The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), has issued an order to address implementation challenges in the Direct Tax Vivad Se Vishwas Scheme, 2024.
The Scheme, which came into effect on October 1, 2024, was introduced under the Finance (No. 2) Act, 2024, to resolve pending direct tax disputes efficiently.
The order, released as S.O. 348(E), highlights specific difficulties encountered in the scheme’s implementation. These include scenarios where appeals were not filed or orders were issued before the cutoff date of July 22, 2024, or where appeals were filed without the necessary application for condonation of delay.
To resolve these challenges, the government invoked Section 98 of the Finance (No. 2) Act, 2024, which authorizes the removal of difficulties arising during the implementation of the Scheme.
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The key provisions of the order include:
Appeals filed in such cases will be treated as pending as of July 22, 2024, for the purpose of the Scheme. Individuals involved will be recognized as appellants under the Scheme.
Disputed tax will be calculated based on the particulars of the appeal and the rules and provisions of the Scheme will be applied accordingly to such cases.
The order aims to ensure that taxpayers who faced procedural delays or other complications can benefit from the Scheme without being excluded due to technicalities. This move reinforces the government’s commitment to resolving long-standing tax disputes and easing the compliance burden for taxpayers.
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