The Central Board of Direct Taxes (CBDT) has officially introduced the Direct Tax Vivad Se Vishwas Scheme (DTVSV) 2024, which will come into effect on October 1, 2024. This initiative, announced during the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman, aims to resolve pending income tax disputes, as stated by the Ministry of Finance in a press release.
A key feature of the scheme is the reduced settlement amount for “new appellants” compared to “old appellants.” Taxpayers who file their declarations before December 31, 2024, will also be eligible for lower settlement amounts, the ministry added.
To implement the scheme, four specific forms have been introduced:
- Form-1: Declaration and undertaking by the taxpayer
- Form-2: Certificate issued by the Designated Authority
- Form-3: Notification of payment by the taxpayer
- Form-4: Order for the full and final settlement of tax arrears
Form-1 must be submitted separately for each dispute unless both the taxpayer and the tax authority have filed appeals against the same order, in which case a single Form-1 can be submitted. Payments must be notified using Form-3, along with proof of withdrawal of any related appeals.
Forms 1 and 3 are required to be filed electronically and will be available on the Income Tax Department’s e-filing portal.
