Relief for more taxpayers in Vivad Se Vishwas Scheme: Govt removes these four difficulties in applying for closure of income tax dispute

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With these four difficulties now being removed, more taxpayers would be able to settle their pending income tax disputes by applying for the Vivad Se Vishwas Scheme, 2024. This scheme, announced in Budget 2024 closes the pending income tax dispute case and the government forgoes the interest and penalty amount if the taxpayer pays the disputed amount of income tax. However, note you have time till January 31, 2025 to pay a lower amount of disputed tax (100%) as from February 1, 2025 you need to pay 110% of the disputed tax amount to apply for Vivad Se Vishwas Scheme.

Which four situations have been amended to help taxpayers?

According to the order here are the four situations: “while implementing the said Scheme difficulties have arisen in situations where:

1. An order in case of a person had been passed on or before the specified date i.e. the 22nd day of July, 2024;2.
2. The time for filing an appeal in respect of such order was available as on the said date;
3. Appeal in respect of such order was filed after the said date within the stipulated time as applicable for filing of such appeal; and
4. Aforesaid appeal is filed without any application for condonation of delay;

“Section 98 of the said Finance (No.2) Act, 2024 provides that if any difficulty arises in giving effect to the provisions of the Scheme, the Central Government may, by Order, not