Deadline for settling I-T disputes without penalties extended: Check date
What's the story
The Income Tax Department has announced an extension to the deadline for the Vivad Se Vishwas Scheme 2024. Taxpayers now have until January 31, 2025, to settle their ongoing tax disputes under this scheme, which was initially set to end on December 31, 2024. This extension will save taxpayers from an additional 10% tax penalty that would have been imposed if they had applied after the original deadline.
Announcement details
Official announcement and implications of the extension
The official announcement was made through a circular issued on December 30, 2024. It stated, "The Central Board of Direct Taxes (CBDT), under its authority in section 97(2) of the Direct Tax Vivad Se Vishwas Scheme 2024, has extended the deadline for determining the payable amount under section 90 of the Scheme to January 31, 2025." The circular further clarified how declarations filed before or after this new deadline will be processed.
Dispute resolution
Scheme's provisions for resolving tax disputes
The Vivad Se Vishwas Scheme, announced in the 2024 Budget, gives taxpayers an opportunity to settle their pending tax disputes with the Income Tax Department. To avail the scheme, taxpayers have to pay the disputed tax amount along with a certain percentage. On submitting payment and application, the department waives additional penalties and interest, effectively settling the dispute.