The deadline for taxpayers taking part in the Vivad Se Vishwas plan has been extended, according to the Central Board of Direct Taxes (CBDT).
The deadline has been moved from December 31, 2024, to January 31, 2025.
According to the CBDT, the extension gives taxpayers more time to calculate the amount owed, which is indicated in column (3) of the scheme's pertinent table.
Union Finance Minister Nirmala Sitharaman introduced the Vivad Se Vishwas scheme in her Budget 2024 speech with the goal of assisting taxpayers in resolving conflicts with the income tax department.
Through the scheme, taxpayers can pay the contested amount plus a certain percentage to resolve their outstanding tax obligations.
Taxpayers can successfully resolve their complaints and avoid further penalties by choosing this plan. The extended system states that penalty charges will vary depending on when the payment is made.
For taxpayers classified as new appellants, the amount owed for the contested tax on January 31, 2025, is 100% of the disputed amount; if paid on February 1, 2025, this amount rises to 110%.
On the other hand, on January 31, 2024, old appellants will be charged with 110 percent, which increases to 120 percent the next day.
New appellants are required to pay 25% on January 31, 2025, and 30% on February 1, 2025, for contested interest, fines, or costs.
The sums for previous appellants are thirty percent on January 31, 2025, and thirty-five cents on February 1, 2025.
Appeal proceedings shall be classified as new applicants if they are filed after January 31, 2020, and as old applicants if they are filed before that date.
According to Vivek Jalan, partner at Tax Connect Advisory Services, "this would definitely help the taxpayers who were grappling with legal issues under Direct Tax Vivad Se Vishwas Scheme 2024 and were delayed in determining how to go into the scheme in specific cases."
