CBDT Circular 12/2024: Navigating the Direct Tax Vivad Se Vishwas Scheme

The Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV Scheme, 2024) aims to provide taxpayers an opportunity to resolve pending income tax disputes. Issued on October 15, 2024, the CBDT Circular No. 12/2024 offers detailed guidance for taxpayers to understand and avail the benefits of the Scheme.

Key Highlights from the Circular:

• Eligible Appeals: The Circular covers appeals pending as of July 22, 2024, before appellate forums. It also extends to cases where objections were filed with the Dispute Resolution Panel (DRP) under section 144C but assessments were not completed by that date.
• Exclusions from the Scheme: The Circular highlights cases not covered under the Scheme, such as search-related assessments, undisclosed foreign income or assets, and cases related to special laws like COFEPOSA, UAPA, and PMLA.
• Timelines & Payment Structure: To benefit from lower payment rates, taxpayers must submit their declarations before December 31, 2024. After this date, higher payment thresholds will apply, as laid out in the Circular’s rate table.
• Forms & Procedures: The Circular explains the necessary forms—Form 1 for declaration, Form 2 for the certificate from the designated authority, Form 3 for payment intimation, and Form 4 for final settlement. This ensures a clear understanding of each step in the process.

What This Means for Taxpayers: The CBDT Circular No. 12/2024 provides essential guidance for taxpayers to settle their disputes under the DTVSV Scheme, avoiding prolonged litigation. With clear instructions on eligibility, payment timelines, and procedural forms, the Circular simplifies the resolution process.

Taxpayers are urged to review the CBDT Circular No. 12/2024, available on the official website of the Income Tax Department (incometaxindia.gov.in), and act promptly to take advantage of the Scheme before the year-end deadline.

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