Income Tax Department Extends Vivad Se Vishwas Scheme Deadline to January 31, 2025

The income tax department has extended the deadline for determining tax dues and filing declarations under the Vivad Se Vishwas scheme. The new deadline is now January 31, 2025. This extension allows taxpayers more time to benefit from waivers on interest and penalties.

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Initially, the Direct Tax Vivad Se Vishwas scheme required taxpayers to file declarations by December 31, 2024. Those who met this deadline would pay 100% of the disputed tax demand, with interest and penalties waived. However, a recent circular from the Central Board of Direct Taxes (CBDT) has shifted this deadline.

Vivad Se Vishwas Scheme Details

The CBDT circular states that taxpayers filing declarations on or after February 1, 2025, will need to pay 110% of the disputed tax demand. This change aims to encourage timely compliance while still offering benefits for early filers. The scheme is available to taxpayers involved in disputes or appeals pending as of July 22, 2024.

Eligible disputes include those before the Supreme Court, High Courts, Income Tax Appellate Tribunal, and Commissioner/Joint Commissioner Appeals. Both taxpayer and tax authority appeals are covered under this scheme. The initiative was announced in the Budget for 2024-25 on July 23.

Impact on Tax Disputes

The Vivad Se Vishwas scheme was officially notified to start on October 1, 2024. It aims to resolve around 2.7 crore direct tax demands currently under dispute at various legal forums. These disputes amount to approximately Rs 35 lakh crore.

This extension offers taxpayers additional time to settle their disputes without incurring extra costs. By resolving these cases, the government hopes to reduce litigation and improve tax compliance.

The scheme's extension reflects the government's commitment to easing taxpayer burdens while ensuring efficient dispute resolution. It provides a structured approach for settling long-standing tax issues.