Tax relief: Govt tweaks rules under Direct Tax Vivad Se Vishwas Scheme to settle these tax disputes; check details

The Finance Ministry has recently modified the Direct Tax Vivad Se Vishwas Scheme, 2024 to address issues faced by taxpayers and provide relief. A circular issued by the ministry stated that the changes were made to remove difficulties that had hindered taxpayers from applying for the scheme earlier. 

The government has released crucial clarifications in the circular regarding the Direct Tax Vivad Se Vishwas Scheme, 2024, to tackle obstacles encountered during its execution.

The clarifications apply to appeals submitted after July 22, 2024, and are still within the prescribed timeframe, ensuring that these cases remain active under the Scheme. This measure is taken to ensure an equitable resolution for taxpayers while aligning with the scheme's guidelines.

Key points

The Direct Tax Vivad Se Vishwas Scheme, 2024, was introduced under the Finance (No.2) Act, 2024 (15 of 2024) and came into effect on October 1, 2024. During the implementation of the scheme, certain issues arose in cases where:

> An order had been issued for an individual on or before the specified date of July 22, 2024.
> The deadline for filing an appeal against the said order was still valid on the aforementioned date.
> The appeal was submitted after July 22, 2024, but within the prescribed timeframe for filing appeals.
> The appeal was made without requiring an application for condonation of delay.

The Central Government, as per Section 98 of the Finance (No.2) Act, 2024, is authorised to address any challenges by issuing an Order that aligns with the scheme's provisions.

As a result, the Central Government has provided the following clarifications:

• Appeals meeting the specified conditions will be deemed pending starting from July 22, 2024, under the scheme.
• The individual initiating such an appeal will be recognised as an appellant within the scheme.
• The disputed tax amount for such cases will be determined based on the filed appeal.
• The regulations outlined in the scheme and relevant rules will be applicable to such cases as appropriate.