The Income Tax Department has extended the deadline for the Vivad Se Vishwas Scheme 2024, allowing taxpayers to settle ongoing disputes by paying a reduced amount of tax. The new deadline is now January 31, 2025, providing additional time for those who have not yet availed themselves of the scheme.
Key Highlights of the Extension:
- Previous Deadline: December 31, 2024.
- New Deadline: January 31, 2025.
- Benefit of Extension: Taxpayers can avoid an additional 10% tax that would have been applicable after the original deadline.
About the Vivad Se Vishwas Scheme 2024:
Announced in the Budget 2024, the Vivad Se Vishwas Scheme 2024 aims to reduce litigation and provide a swift resolution mechanism for pending income tax disputes. By opting for this scheme, taxpayers can settle disputes by paying a specified percentage of the disputed tax amount, thereby avoiding prolonged legal proceedings and potential penalties.
Advantages of Availing the Scheme:
- Reduced Tax Liability: Settle disputes by paying a lower amount than the total disputed tax.
- Avoidance of Penalties and Interest: The scheme offers relief from additional penalties and interest associated with the disputed amount.
- Resolution of Prolonged Litigation: Provides a faster alternative to lengthy legal processes, ensuring peace of mind for taxpayers.
Steps to Avail the Scheme:
- Eligibility Check: Determine if your tax dispute qualifies under the scheme’s provisions.
- Application Submission: File the necessary forms and declarations as prescribed by the Income Tax Department.
- Payment of Disputed Tax: Pay the calculated amount to settle the dispute before the extended deadline.
- Obtain Final Settlement: Receive confirmation from the tax authorities, indicating the closure of the dispute.
Conclusion:
The extension of the Vivad Se Vishwas Scheme 2024 deadline to January 31, 2025, offers a valuable opportunity for taxpayers to resolve pending disputes favorably. It is advisable to assess your eligibility and consider availing of the scheme within the stipulated time to benefit from reduced tax liabilities and expedited dispute resolution.