How much payable in Vivad Se Vishwas Scheme 2024 (VsV 2.0)

Discover the Direct Tax Vivad Se Vishwas Scheme, Settle your income tax disputes quickly and easily with the support of Udaipur CA . Act now to resolve outstanding appeals!

Encouraged by the achievements of the previous Vivad Se Vishwas Scheme (VsV) launched in 2020 and the increasing accumulation of income tax disputes, the Government has put forth a proposal to implement VsV 2024 (VsV 2.0).

The 2024 Scheme facilitates the resolution of disputes that are outstanding as of 22 July 2024 under the Income-tax Laws (ITL). It is inspired by the earlier Direct Tax Vivad Se Vishwas Act, 2020 (2020 Scheme) in terms of its applicability, procedures, and methods for dispute resolution.

Direct Tax Vivad Se Vishwas Scheme 2024: CBDT notifies these rules, forms from October 1, 2024

Applicability

The 2024 Scheme can be availed by taxpayers in various cases such as; Where

• appeals/writ petition/special leave petition (SLP) relating to disputed tax, interest, penalty or fee is pending before the appellate authorities/High Court (HC) /Supreme Court (SC) ;
• objections are filed before the Dispute Resolution Panel and the DRP is yet to issue directions,
• DRP has issued directions, however, the tax authority is yet to pass an assessment order in conformity with such directions,
•  Revision application is filed by the taxpayer before the Commissioner. 

Payable amount

As per the  scheme, a taxpayer may settle its eligible disputes by making payment of the amounts as determined by the Designated Authority (DA) as per the 2024 Scheme as under 

Sr. No.	Nature of tax arrear	The amount payable on or before 31.12.2024	Amount payable after 1.1.2025 but before the  last date* (*Last date to be notified)
1.	Aggregate amount of disputed tax, interest on such disputed tax and penalty levied or liveable on such disputed tax:-
	Appeal filed after 31.1.2020 but before 22.7.2024	100% of disputed tax	110% of disputed tax
	Appeal pending at the same forum on or before 31.1.2020	110% of disputed tax	120% of disputed tax
2.	Disputed interest / penalty/ fee
	Appeal filed after 31.1.2020 but before 22.7.2024	25% of disputed interest/penalty/fees	30% of disputed interest/penalty/fees
	Appeal pending at the same forum on or before 31.1.2020	30% of disputed interest/penalty/fees	35% of disputed interest/penalty/fees
3.	Amount payable would be reduced to 50% in the following cases :- a. Where the taxpayers’ appeal related to an issue, which has been decided in its favour by the Income Tax  Appellate Tribunal/High court,(and not reversed by the High court or the Supreme Court, as the case may be )   b. The appeal has been filed by Tax Authorities.

1. If the tax payable under VsV 2.0 is less than the amount already paid during the litigation, the excess will refunded without any interest.

• In cases where the dispute relates to the reduction of MAT/AMT credit or loss/deprecation, an option will be available to include the amount of tax related to such tax crdit/loss/deprecation in the disputed taxes or carry forward the reduced MAT/AMT credit or loss/deprecation.

Other salient features

• Immunity from initiation of any proceedings in respect of an offence and imposition of penalty or interest regarding tax arrears is provided for matters opted under VsV 2.0.
• Declaration made under VsV 2.0 will not be considered as a precedent for the taxpayer or the tax authority in relation to the issues covered under the declaration.

Exclusions
The VsV 2.0 will not apply in certain cases, such as search and seizure, prosecution, undisclosed income/asset located overseas, proceedings under other specified laws being instituted, etc.

Understand the benefits of the Direct Tax Vivad Se Vishwas Scheme with the udaipur Ca , Simplify your income tax issues and settle outstanding appeals. Start now!