The Ministry of Finance has the Direct Tax Vivad se Vishwas Rules, 2024, which will on 1 October 2024. The tax resolution scheme was mentioned in the 2024-2025 union budget and detailed in the .
The new rules aim to resolve the pending appeals on income tax disputes by allowing lower settlement amounts for new appellants. A new appellant is a declarant in a tax dispute appeal filed after 31 January 2020. The scheme also allows taxpayers to pay lower settlement amounts if they file their declaration before 31 December 2024.
Under the tax resolution scheme a declarant must file a declaration with the authorities using form 1. After the declaration is filed, any appeal on disputed income, interest, penalty, fee, or arrears must be withdrawn. Once the authorities receive the declaration, they will determine the amount payable within 15 days, after which the declarant will have another 15 days to pay. This will conclude the dispute and appeals are not allowed.
Filing a declaration, as well as undertaking and confirming the payment can be completed electronically through the official portal and website.
