CBDT issues revised FAQs on Direct Tax Vivad se Vishwas Scheme 2024

CBDT issues revised FAQs on Direct Tax Vivad se Vishwas Scheme, 2024. Taxpayer eligible to apply for DTVSV Scheme, 2024 for appeal pending as on 22.7.2024 even if appeal has been disposed of on merits or dismissed as withdrawn

CBDT has issued revised FAQ clarifying that taxpayer eligible to apply for DTVSV Scheme, 2024 for appeal pending as on 22.7.2024 even if appeal has been disposed of on merits or dismissed as withdrawn for the Scheme.

The Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV Scheme 2024) has been enacted vide Finance (No. 2) Act, 2024 to provide for dispute resolution in respect of pending income tax litigation. The objective of the Scheme is to inter alia, reduce pending income tax litigation, generate timely revenue for the Government and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process.

The commencement date of the said Scheme has already been notified as 1.10.2024. Further, Rules and Forms for enabling the Scheme have also been notified on 20.09.2024. After enactment of the DTVSV Scheme, 2024, several queries were received from the stake-holders seeking guidance in respect of various provisions contained therein.

CBDT had issued a Guidance Note 1/2024 in the form of answers to the frequently asked questions (FAQs) vide Circular No. 12 of 2024 dated 15.10.2024. However, to address to other queries received from the stake-holders for the clarification. CBDT vide Circular No. 19 of 2024 dated 16.12.2024 has issued revised Guidance Note 2/2024 in the form of answers to the  Frequently asked questions (FAQs) to provide further clarification.

In the revised Guidance Note 2/2024 , FAQ No .8 of the Guidance Note 1/2024 has been modified and incorporated as FAQ No. 36. Thus, FAQ No. 8 of the Guidance Note 1/2 024 shall be considered as omitted.

Eligibility of cases

Question No. 36 Suppose a taxpayer is eligible to apply for DTVSV Scheme, 2024 Scheme as appeal was pending as on 22.7.2024. But subsequently, before the taxpayer could file declaration under the DTVSV Scheme, 2024, his appeal has been disposed of on merits or dismissed as withdrawn for the purposes of the Scheme. Can such a taxpayer still file declaration under the Scheme?

Answer: Yes, such cases are eligible for settlement under the Scheme as appeal was pending as on 22.7.2024. Disputed tax will be calculated in the same manner as if the appeal pending on 22.7.2024 is yet to be disposed off.

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