CBDT Notifies Direct Tax Vivad Se Vishwas Rules, 2024

Notification No. 104/2024, dated 20-09-2024

To streamline the resolution of direct tax disputes, the Ministry of Finance has issued a notification introducing the “Direct Tax Vivad Se Vishwas Rules, 2024.” The new rules, promulgated under the Finance (No. 2) Act, 2024, aim to provide a comprehensive framework for taxpayers to settle their pending tax disputes with the Income Tax Department.

The Rules outline the scheme’s procedural aspects, offering a structured mechanism for taxpayers to resolve ongoing litigation by paying a specified amount, thereby reducing the burden of prolonged legal battles and interest liabilities. The Key Features of the Scheme are as follows:

a) Dispute Definition
Under the rules, the term “dispute” includes appeals, writs, and special leave petitions filed by taxpayers or the Income Tax Department before appellate forums. It also covers objections filed before the Dispute Resolution Panel (DRP) and the DRP has not issued any direction, or the DRP has issued direction, but the AO has not completed the assessment under section 144C(13) or applications under Section 264 of the Income Tax Act, 1961.

b) Payment Structure:
Taxpayers who opt to settle their disputes by filing a declaration before December 31, 2024, will pay a reduced amount as specified in section 90 of the Finance (No. 2) Act, 2024. Higher amounts will be payable for declarations made between January 1, 2025, and the last date.

c) Forms for Declaration and Settlement:
The scheme mandates the use of specific forms:

• • Form-1: To declare the dispute and submit an undertaking.
  • Form-2: The designated authority shall issue a certificate in Form-2 confirming the amount payable for full and final settlement.
  • Form-3: The intimation of payment made pursuant to the certificate issued by the designated authority, along with the proof of withdrawal of the appeal, is furnished by the declarant in Form-3.
  • Form-4: Order by designation authority in respect of payment of the amount payable by the declarant.

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