New Taxpayer Rule Effective From 1st October 2024: Key Details You Need To Know
From 1st October 2024, significant changes are set to impact taxpayers across India with the implementation of the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024. This scheme, notified by the Central Board of Direct Taxes (CBDT), is designed to streamline income tax disputes and provide a more favorable settlement process, especially for new appellants. Here's a breakdown of the key elements taxpayers should be aware of.
What is the DTVSV Scheme ?
The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024 was introduced in the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman and enacted through the Finance (No. 2) Act, 2024. This scheme aims to resolve pending income tax disputes by offering lower settlement amounts, particularly for newer appellants compared to older ones.
# Key Highlights of the Scheme
Lower Settlement Amounts:
Filing Process:
The scheme mandates the use of four specific forms for the settlement process:
Separate Forms for Disputes:
Each dispute must be filed separately using Form-1. However, if both the appellant and the tax authority have appealed the same order, only a single Form-1 is needed.
Electronic Filing and Payment Notification
Taxpayers are required to submit Forms 1 and 3 electronically through the Income Tax Department ’s e-filing portal: www.incometax.gov.in. Payment notification must be furnished to the Designated Authority along with proof of the withdrawal of any appeals or petitions.
Detailed Provisions
For those looking to dive deeper into the details of the scheme, provisions from section 88 to section 99 of the Finance (No. 2) Act, 2024, along with the Direct Tax Vivad Se Vishwas Rules, 2024, contain all the necessary guidelines.
The DTVSV Scheme, effective from October 2024, offers a simplified path for taxpayers to resolve income tax disputes while benefiting from reduced settlement amounts. It’s important for taxpayers, especially those with pending appeals, to familiarize themselves with the scheme and make the most of the opportunities provided before the 31st December 2024 deadline.
What is the DTVSV Scheme ?
The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024 was introduced in the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman and enacted through the Finance (No. 2) Act, 2024. This scheme aims to resolve pending income tax disputes by offering lower settlement amounts, particularly for newer appellants compared to older ones.
# Key Highlights of the Scheme
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Lower Settlement Amounts:
- New appellants benefit from reduced settlement amounts compared to older appellants.
- Taxpayers who submit declarations before 31st December 2024 will enjoy further reductions in settlement amounts.
Filing Process:
The scheme mandates the use of four specific forms for the settlement process:
- Form-1: For filing a declaration and undertaking by the taxpayer.
- Form-2: Issued by the Designated Authority as a certificate of declaration.
- Form-3: For taxpayers to notify the payment details.
- Form-4: Represents the final settlement order issued by the Designated Authority.
Separate Forms for Disputes:
Each dispute must be filed separately using Form-1. However, if both the appellant and the tax authority have appealed the same order, only a single Form-1 is needed.
Electronic Filing and Payment Notification
Taxpayers are required to submit Forms 1 and 3 electronically through the Income Tax Department ’s e-filing portal: www.incometax.gov.in. Payment notification must be furnished to the Designated Authority along with proof of the withdrawal of any appeals or petitions.
Detailed Provisions
For those looking to dive deeper into the details of the scheme, provisions from section 88 to section 99 of the Finance (No. 2) Act, 2024, along with the Direct Tax Vivad Se Vishwas Rules, 2024, contain all the necessary guidelines.
The DTVSV Scheme, effective from October 2024, offers a simplified path for taxpayers to resolve income tax disputes while benefiting from reduced settlement amounts. It’s important for taxpayers, especially those with pending appeals, to familiarize themselves with the scheme and make the most of the opportunities provided before the 31st December 2024 deadline.
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