Income Tax Relief Alert: Vivad Se Vishwas Deadline Is April 30

Deadline Approaching: Settle Your Income Tax Disputes Under Vivad Se Vishwas Scheme by April 30, 2025

4/22/20252 min read

The Indian government's Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV) offers taxpayers a final opportunity to resolve pending income tax disputes amicably. With the deadline set for April 30, 2025, it's crucial to understand the scheme's benefits and procedures to take timely action.

What is the Vivad Se Vishwas Scheme?

Introduced in the Union Budget 2024-25 and operational from October 1, 2024, the DTVSV aims to reduce litigation by allowing taxpayers to settle disputes by paying the principal tax amount. In return, the government waives off associated interest, penalties, and prosecution charges, facilitating a more straightforward resolution process.

Eligibility Criteria

Taxpayers can avail of the scheme if their income tax disputes were pending as of July 22, 2024. Eligible cases include:Income Tax Department

Appeals, writ petitions, or special leave petitions filed by the taxpayer or the Income Tax Department pending before any appellate forum.
Objections filed with the Dispute Resolution Panel (DRP) where no direction was issued before July 22, 2024.
Cases where the DRP has issued directions under section 144C(5), but the assessing officer hasn't completed the assessment yet.
Applications for revision under section 264 awaiting a decision.

Note: The scheme exclusively covers income tax disputes. Cases related to wealth tax, securities transaction tax (STT), or commodity transaction tax are excluded.

Required Forms and Application Process

To settle disputes under the DTVSV, taxpayers must follow a structured process involving four key forms:

Form 1: Declaration and undertaking by the taxpayer.
Form 2: Certificate issued by the designated authority confirming the details.
Form 3: Proof of payment submitted by the taxpayer.
Form 4: Final order confirming the settlement of the tax dispute.

These forms are available on the Income Tax Department's e-filing portal. www.incometax.gov.in/iec/foportal/

Deadline and Final Opportunity

The Central Board of Direct Taxes (CBDT) has notified April 30, 2025, as the last date to file declarations under the DTVSV. Taxpayers are encouraged to act promptly to avoid missing this opportunity to resolve disputes without prolonged litigation.

Benefits of the Scheme

Waiver of Interest and Penalties: By paying the principal tax amount, taxpayers can benefit from the waiver of interest, penalties, and prosecution charges.
Simplified Resolution: The scheme offers a streamlined process to settle disputes, reducing the burden on both taxpayers and the judiciary.
Legal Certainty: Settling disputes under the scheme provides legal closure and peace of mind to taxpayers.

Conclusion