Extension of Due Date for Determining Amount Payable Under Direct Tax Vivad Se Vishwas Scheme, 2024
Introduction
Extension of Due Date for Determining Amount Payable Under Direct Tax Vivad Se Vishwas Scheme, 2024 The government’s Direct Tax Vivad Se Vishwas Scheme, 2024, aimed at resolving pending tax disputes, has brought relief to taxpayers by offering an opportunity to settle disputes related to direct taxes, including those concerning outstanding demands and appeals. The scheme is a significant initiative to reduce litigation and provide taxpayers with a chance to clear their dues with minimal penalties.
On 30th December, 2024, the Central Board of Direct Taxes (CBDT) issued Circular No. 20/2024, extending the due date for determining the amount payable under the scheme. This circular clarifies the extended timeline and provides relief to taxpayers who are in the process of filing their declarations under the scheme.
In this blog, we’ll delve into the details of this extension, what it means for taxpayers, and the implications for filing declarations.
What is the Direct Tax Vivad Se Vishwas Scheme, 2024?
The Direct Tax Vivad Se Vishwas Scheme, 2024 is a government initiative introduced to resolve pending direct tax disputes. The scheme allows taxpayers to settle their outstanding tax disputes by paying a reduced amount of tax or penalty, depending on the situation, and avoid prolonged litigation. This scheme is in line with the government’s goal of easing the tax compliance process and ensuring faster resolution of tax-related issues.
Under the scheme, taxpayers can settle disputes related to:
- Appeals pending before any appellate authority.
- Tax demands where the taxpayer has not yet paid the full amount due.
- Rectification of errors in the assessment process.
One of the key features of the scheme is the determination of the amount payable by the taxpayer, which depends on several factors, including the stage of the dispute and the amount in question.
Circular No. 20/2024 – Key Details
The CBDT has extended the due date for determining the amount payable under the scheme by one month. Here are the important details from the circular:
- Extension of Due Date:
- The original due date for determining the amount payable under Column (3) of the Table specified in Section 90 of the Direct Tax Vivad Se Vishwas Scheme, 2024 was 31st December, 2024.
- With this circular, the due date has been extended to 31st January, 2025.
- Determination of Amount Payable:
- According to Section 90 of the scheme, the amount payable depends on the stage at which the dispute is and the declaration made by the taxpayer.
- The taxpayers who file their declaration by 31st January, 2025 will have their amount payable determined as per Column (3) of the Table specified in Section 90 of the Scheme.
- The circular ensures that taxpayers who meet this extended deadline will have more time to fulfill the requirements without facing additional penalties or complications.
- Implications for Filing Declaration:
- Before 31st January, 2025: Taxpayers who file a declaration before the extended deadline will benefit from the favorable conditions set out in Section 90 of the Scheme.
- After 31st January, 2025: The circular does not provide clarity on whether different provisions will apply for declarations filed after 31st January, 2025. However, it’s likely that taxpayers who file after the new deadline may face more stringent conditions or different amounts payable.
Why Was the Due Date Extended?
The extension of the due date is a response to the ongoing challenges faced by taxpayers in filing their declarations and determining the exact amount payable under the scheme. Several reasons can be attributed to the extension, including:
- Allowing More Time for Taxpayers: Many taxpayers may not have completed the necessary steps to file their declarations, especially those who are still awaiting the resolution of disputes or the collection of necessary documents.
- Streamlining the Process: The extension allows the authorities to further streamline the process, ensuring that taxpayers who have filed declarations can have their amounts accurately determined without unnecessary pressure.
- Taxpayer Relief: The government’s move to extend the deadline is likely a gesture to provide relief to taxpayers, who have been under the burden of resolving tax disputes. The extra month offers more flexibility and ensures that taxpayers are not penalized for delays due to procedural or logistical reasons.
Impact of the Extension on Taxpayers
The extension of the due date offers several benefits for taxpayers:
- Additional Time to Settle Disputes: Taxpayers who were unable to meet the initial deadline now have a full month to submit their declarations. This provides a crucial window for those who need to finalize their payments or clarify their tax disputes.
- More Accurate Payment Determination: With the extra time, taxpayers can ensure that their amount payable is determined accurately based on the specific details of their dispute, avoiding errors or miscalculations.
- Minimized Penalties: The extension reduces the pressure on taxpayers to rush their declarations, ensuring they meet the deadlines without incurring penalties for late submissions.
- Encouragement for More Participation: By extending the deadline, more taxpayers may choose to opt for the scheme, helping the government achieve a higher success rate in resolving outstanding tax disputes.
https://www.incometax.gov.in/iec/foportal/
What Happens After 31st January, 2025?
While the circular clarifies the deadline extension, it is important to note that any declarations filed after 31st January, 2025 may be subject to revised terms. The circular does not provide specific details on whether taxpayers who file beyond this date will face stricter conditions or penalties.
Thus, taxpayers who intend to benefit from the scheme should aim to submit their declarations before 31st January, 2025 to take advantage of the favorable conditions outlined in the scheme. It’s advisable to keep track of any future notifications from the CBDT to ensure compliance with any new deadlines or requirements.
Conclusion
The extension of the due date for determining the amount payable under the Direct Tax Vivad Se Vishwas Scheme offers an important relief to taxpayers looking to resolve their tax disputes. With the new deadline of 31st January, 2025, taxpayers now have an additional month to file their declarations and have their amounts determined according to the provisions set out in the scheme.
This move by the CBDT not only provides more time for tax compliance but also encourages greater participation in the scheme, helping reduce tax-related disputes across the country. As always, taxpayers should be diligent about meeting the new deadline and ensure that their filings are accurate to avoid complications in the future.
Stay informed and make the most of the extension by completing your filing before the extended deadline.
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