The Ministry of Finance has issued a new directive to expand eligibility for the Direct Tax Vivad Se Vishwas Scheme (DTVSVS), 2024, addressing the issues faced by certain taxpayers who were previously unable to apply due to statutory limitations. By resolving these difficulties, more taxpayers can settle their income tax disputes and benefit from the scheme’s provisions.
Overview of DTVSVS
The scheme, announced during Budget 2024, seeks to resolve pending income tax disputes. By paying the disputed tax, taxpayers can avoid interest and penalties. Key Dates are as under:
i) Full waiver of interest and penalties if the disputed tax is paid by January 31, 2025.
ii) After February 1, 2025, taxpayers must pay 110% of the disputed tax.
Resolution of Eligibility Issues
The government has clarified that taxpayers meeting specific conditions can now apply for the scheme. These conditions are:
i) An order was passed on or before July 22, 2024.
ii) The time to file an appeal was available as of that date.
iii) The appeal was filed later but within the permitted timeline.
iv) No application for condonation of delay was submitted.
Under the updated rules, such appeals are considered pending as of July 22, 2024, and eligible for dispute resolution under the scheme.
Amendments to DTVSVS
The Central Board of Direct Taxes (CBDT) vide Notification 8/2025 dated 20/01/2024 has removed such difficulties and made requisite amendments in the Scheme, as under:
i) Appeals meeting the above conditions will be treated as pending as of July 22, 2024.
ii) Taxpayers in such cases will be recognized as appellants under the scheme.
iii) The disputed tax will be calculated based on the appeal filed.
iv) All provisions and rules of the scheme will apply accordingly.
Relief for Left-Out Taxpayers
Taxpayers previously excluded due to procedural limitations now stand to gain. These include cases where:
i) The time to file an appeal was still available on July 22, 2024.
ii) Appeals were filed on time, though after the eligibility date.
This clarification follows a Delhi High Court directive in the case of Naveen Kumar Aggarwal vs. CBDT.
Eligibility Criteria under DTVSVS
Taxpayers can apply if:
i) Appeals, writ petitions, or special leave petitions were pending as of July 22, 2024.
ii) Objections were filed before the Dispute Resolution Panel (DRP) and no directions were issued by July 22, 2024.
iii) DRP directions were issued, but the assessment order was not passed by July 22, 2024.
iv) Applications under Section 264 for revision were pending as of July 22, 2024.
Tax Payable Under DTVSVS
The taxpayers are required to pay the prescribed amount along with the application to settle the disputes under the Scheme. Such amount depends on the nature of tax arrears and the timing of the declaration, as under:
| Nature of Tax Arrears | Before Jan 31, 2025 | From Feb 1, 2025 |
| Disputed tax, interest, penalty (new) | 100% | 110% |
| Disputed tax, interest, penalty (existing) | 110% | 120% |
| Disputed interest/penalty/fee (new) | 25% | 30% |
| Disputed interest/penalty/fee (existing) | 30% | 35% |
This update enables more taxpayers to settle disputes efficiently and take advantage of reduced liabilities under the Vivad Se Vishwas Scheme, 2024. Professionals and individuals should carefully assess their eligibility and apply within the prescribed timelines to avail benefits under the Vivad Se Vishwas Scheme, 2024. (ET)
CBDT Income Tax Notification 8/2025 dated 20/01/2025: Amendment to Direct Tax Vivad Se Vishwas Scheme, 2024 regarding Eligibility Issues