Income Tax: Deadline to declare tax arrears under Vivad se Vishwas scheme is this date; check details

The Central Board of Direct Taxes (CBDT) has set April 30, 2025, as the final date for taxpayers to file declarations regarding tax arrears under the Vivad se Vishwas Scheme, 2024. This announcement, made via a CBDT circular, requires taxpayers to submit their declarations to the designated authority by this deadline. The scheme aims to simplify the resolution of ongoing disputes with the income tax department, offering taxpayers an opportunity to settle their issues more amicably.

Introduced in the 2024 budget by Union Finance Minister Nirmala Sitharaman, the Vivad se Vishwas Scheme became operational on October 1, 2024. It allows taxpayers to settle outstanding income tax disputes by paying a reduced tax amount. 

The CBDT notification stated that individuals who wish to participate in this scheme must submit their declarations to the specified authority by the 30th of April, 2025. This is the inaugural announcement of a deadline for the scheme, allowing tax-payers to take advantage of it until the end of the month. It is important to note that the scheme is applicable only to disputes that were unresolved as of the 22nd of July, 2024.

Disputes that were unresolved as of July 22, 2024, are eligible for this scheme. The CBDT has clarified that cases pending before the Income Tax Settlement Commission or under review petitions in higher courts are not eligible for settlement under the scheme. To assist taxpayers, the Income Tax Department has released a set of frequently asked questions (FAQs) on its portal, clarifying eligibility and procedural details.

The strategic intent behind the scheme is to reduce litigation and enhance compliance by providing a straightforward pathway for dispute resolution. Previous schemes have yielded mixed results, and with this iteration, the government seeks to maximise participation and optimised outcomes. The Vivad se Vishwas Scheme is part of broader fiscal policies aimed at improving revenue collection while minimising prolonged legal entanglements.

In the competitive landscape of tax compliance, the Vivad se Vishwas Scheme offers taxpayers a significant opportunity to resolve disputes. With the deadline looming, taxpayers are encouraged to evaluate their options and act promptly. The expectation is that the scheme will lead to efficient dispute settlement, reflected in both the number of participants and the resolution of outstanding cases.