The Central Board of Direct Taxes (CBDT) has officially announced the Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV). Set to take effect on 1 October 2024, this initiative was introduced during the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman.
The DTVSV Scheme has been launched to offer taxpayers a more favourable resolution process, with new appellants benefiting from lower settlement amounts compared to those who have previously appealed. Additionally, taxpayers who make their declarations by 31 December 2024, will also enjoy reduced settlement amounts, incentivising timely participation in the scheme.
To facilitate the implementation of the scheme, the CBDT has introduced four specific forms that taxpayers will need to complete. Form-1 serves as a declaration and undertaking by the declarant and must be filed separately for each dispute, although joint appeals can be addressed with a single submission. Form-2 is a certificate issued by the Designated Authority, while Form-3 is used for notifying payments made by the declarant. Finally, Form-4 represents the order for full and final settlement of tax arrears.
Taxpayers will be required to file Forms 1 and 3 electronically through the Income Tax Department's e-filing portal. Alongside Form-3, payment notifications must be submitted, accompanied by proof of withdrawal of any related appeals.
