Context:
- The Central Board of Direct Taxes (CBDT) has set April 30, 2025, as the last date to file declarations under the Direct Tax Vivad se Vishwas (DTVSV) Scheme 2024.
- The scheme aims to resolve pending income-tax disputes across appellate authorities including the Supreme Court and high courts, as of July 22, 2024.
Scheme Details and Filing Process
- Operational since: October 1, 2024.
- Filing mode: Electronic only.
- Form required: Form 1, available on the Income Tax Department’s e-filing portal.
- Key requirement: A separate declaration is to be filed for each pending dispute.
Background and Response
- DTVSV 2024 is the second edition of the tax dispute resolution scheme.
- The first edition was applicable to appeals pending as of January 31, 2020.
- Participation data:
- 2024 edition: 40,597 assessees (as of February 18)
- 2020 edition: 139,384 assessees
- The response to the second edition has been relatively lukewarm, raising concerns about awareness and uptake.
Implications for Taxpayers
- Taxpayers with pending appeals are encouraged to opt into the scheme to resolve disputes efficiently.
- The scheme provides a cost-effective and litigation-free method to settle outstanding tax issues.
- Timely declaration by April 30 ensures eligibility for resolution under this one-time scheme.
