Notification - Central Government appointed the date of the Direct Tax Vivad Se Vishwas Scheme, 2024, which shall come into force on the 1st day of October, 2024.

"S.O. 4016(E).—In exercise of the powers conferred by sub-section (2) of section 88 of the Finance (No. 2) Act, 2024 (15 of 2024), the Central Government hereby appoints the 1st day of October, 2024 as the date on which the Direct Tax Vivad Se Vishwas Scheme, 2024 shall come into force."

[Notification No. 103 /2024 dated 19.09.2024]

Sections 88 to 99 of the Finance Act, 2024 contains The Direct Tax Vivad Se Vishwas Scheme 2024. Some important feature are as under:-

Section 89 - Definitions

(a) "appellant" means—
(i) a person in whose case an appeal or a writ petition or special leave petition has been filed either by him or by the income-tax authority or by both, before an appellate forum and such appeal or petition is pending as on the specified date; or
(ii) a person who has filed his objections before the Dispute Resolution Panel under section 144C of the Income-tax Act and the Dispute Resolution Panel has not issued any direction on or before the specified date; or
(iii) a person in whose case the Dispute Resolution Panel has issued direction under sub-section (5) of section 144C of the Income-tax Act and the Assessing Officer has not completed the assessment under sub-section (13) of that section on or before the specified date; or
(iv) a person who has filed an application for revision under section 264 of the Income-tax Act and such application is pending as on the specified date;
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(j) "disputed tax", in relation to an assessment year or financial year, as the case may be, means the income-tax including surcharge and cess (hereafter in this Chapter referred to as the amount of tax) payable by the appellant under the provisions of the Income-tax Act, as computed hereunder:—
(A) in a case where any appeal, writ petition or special leave petition is pending before the appellate forum as on the specified date, the amount of tax that is payable by the appellant if such appeal or writ petition or special leave petition was to be decided against him;
(B) in a case where objection filed by the appellant is pending before the Dispute Resolution Panel under section 144C of the Income-tax Act, as on the specified date, the amount of tax payable by the appellant if the Dispute Resolution Panel was to confirm the variation proposed in the draft order;
(C) in a case where Dispute Resolution Panel has issued any direction under sub-section (5) of section 144C of the Income-tax Act, and the Assessing Officer has not completed the assessment under sub-section (13) of that section on or before the specified date, the amount of tax payable by the appellant as per the assessment order to be passed by the Assessing Officer in pursuance of the said assessment under sub-section (13) thereof;
(D) in a case where an application for revision under section 264 of the Income-tax Act, is pending as on the specified date, the amount of tax payable by the appellant if such application for revision was not to be accepted:
 Provided that in a case where the dispute in relation to an assessment year relates to reduction of tax credit under section 115JAA or section 115JD of the Income-tax Act, or any loss or depreciation computed thereunder, the appellant shall have an option either to include the amount of tax related to such tax credit or loss or depreciation in the amount of disputed tax, or to carry forward the reduced tax credit or loss or depreciation, in such manner as may be prescribed.;

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(n) "specified date" means the 22nd day of July, 2024;

Section 90 - Amount payable by declarant. 

(i) Where matter in dispute relates to tax, interest and penalty levied or leviable in a case where appeal has been filed after 31.01.2020, the amount payable will be 100% of tax and in a case where appeal has been filed after 31.01.2020 the amount payable will be 100% of tax if paid on or before 31.12.2024. The amount payable will be increase to 100% to 110% and 110% to 120% if paid on or after 01.01.2025. 

(ii) In case appeal relate to interest and penalty amount payable will be 25% and 30% depending on filing of appeal and if not paid till 31.12.2024 it will be 30% and 35% respectively. 

(iii) In case addition proposed by TPO/AO and objections filed before DRP and issue are in favours of appellant as on date amount payable will be 50% tax on proposed amount. 

(iv) Where appeal or writ or SLP is filed by the department then amount payable is 50% of disputed tax or where matter relates to interest or penalty, 12.5% thereof.

Section 91 - Filing of declaration and particulars to be furnished.- The declaration can be filed in the cases of disputed tax as well as where interest, penalty or fee is under dispute. 

Section 92 - Time and manner of payment. - 15 days for passing the order by designated authority after receipt of declaration and 15 days for making payment after receipt of order of designated authority.

Section 93 - Immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases. - Subject to the provisions of section 92, the designated authority shall not institute any proceeding in respect of an offence; or impose or levy any penalty; or charge any interest under the Income-tax Act in respect of tax arrear.

Section 94 - No refund of amount paid.

Section 95 - No benefit, concession or immunity to declarant. - Save as otherwise expressly provided in sub-section (3) of section 92 or section 93, nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in relation to which the declaration has been made.

Section 96 - Scheme not to apply in certain cases. - Declaration cannot be filed in the cases of assessments made pursuant to search, relating to undisclosed income from a source outside India, relating to assessment or re-assessment made on the basis of information received by the department from outside India and in the cases where prosecution has been instituted on or before filing the declaration or assessee has be detained under the provisions of Conservation of Foreign Exchange and Prevention of Smuggling Act, 1974 and also in the cases where assessee has been prosecuted for any offence punishable under the provisions of certain other specified Acts.

Section 97 - Power of Board to issue directions, etc.

Section 98 - Power to remove difficulties.

Section 99 - Power to make rules.  The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Scheme.

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