It was announced in the budget…Now it will be implemented from October 1st, do you know what is the “Vivad se Vishwas” scheme? – Marriage Wishes

The Central Board of Direct Taxes (CBDT) has launched the Direct Tax Vivad Se Vishwas Scheme 2024 (DTVSV), which will come into effect from the first day of next month, i.e. October 1, 2024. While presenting the first budget of Modi 3.0, Finance Minister Nirmala Sitharaman said that a scheme for settlement of income tax disputes will be launched soon, which has been approved by the CBDT. Through this, pending tax-related cases can be resolved quickly.

These taxpayers benefit the most
The Vivad Se Vishwas scheme is a scheme of the central government under which taxpayers can easily resolve disputes related to direct taxes (income tax). The CBDT has also issued a notification regarding the rules related to the scheme, which will come into effect from October 1. It appears that the biggest benefit will go to taxpayers who file their applications before December 31, 2024, which is the last day of the year. They will be able to get the maximum settlement amount, while those who file after this deadline will get a lesser settlement amount.

✅CBDT notified the rules and forms for the Direct Tax Vivad Se Vishwas Scheme, 2024 (DTVSV, 2024).

✅ The DTVSV 2024 announced by the Minister of Finance in his budget speech will come into effect from October 1, 2024.

✅ The rules and forms for enabling this program have been notified… pic.twitter.com/XHMxq4EvKc

— Income Tax India (@IncomeTaxIndia) September 21, 2024

The government has high hopes for the plan
The Vivad Se Vishwas scheme is aimed at providing relief to those who have multiple disputes over their tax liabilities and whose income tax disputes are pending in various courts, including the Supreme Court, High Courts, Income Tax Appellate Tribunal and Commissioner/Joint Commissioner (Appeals). The government hopes that the scheme will help resolve direct tax demands of around Rs 2.7 billion, amounting to around Rs 3.5 billion. Under this scheme, the income tax department has already issued four types of forms and started processing the cases expeditiously.

These four forms have been issued

Table 1 – Here you will provide declaration documents and commitments
Table 2 – This will be used for the certificate issued by the authority
Table 3 – Payment information will be provided by the filer under this form
Form 4 – The authorities will provide information on the full and final settlement of tax arrears.

Tables 1 and 3 are very important
In the new government scheme, every income tax-related dispute will have to be filed in a separate Form-1. You will have to share the payment information in Form-3. In this case, you will have to file an appeal, objection, application, writ petition or a certificate of withdrawal of claim with the authorities. Taxpayers can file Form 1 and Form 3 electronically. These forms will be available on the e-filing portal of the income tax department, which is www.venuetax.gov.in.

What are direct taxes and indirect taxes?
In India, income tax is a direct tax. If you fall within the prescribed range, you should pay tax according to your income bracket and file an income tax return (ITR). Matters related to goods and services tax, or GST, are indirect taxes. You have to pay GST on any goods you buy or any services you use, such as telecommunications.