To address outstanding appeals in income tax disputes, the Central Board of Direct Taxes (CBDT) has announced the Direct Tax Vivad Se Vishwas Scheme, 2024 (also known as DTVSV, 2024) in accordance with the statement made by Finance Minister Nirmala Sitharaman in the Union Budget.

The plan will take effect on October 1st, the Ministry of Finance said on Saturday.

Finance (No. 2) Act, 2024 was used to implement the DTVSV Scheme, 2024. Furthermore, Notification No. 104/2024 in G.S.R. 584(E) dated September 20th notifies of the Rules and Forms needed to enable the scheme.

A “new appellant” will get a less settlement sum under the DTVSV Scheme than a “old appellant.” Additionally, taxpayers who submit declarations by December 31, 2024, or sooner, will receive less settlement amounts under the DTVSV Scheme than would those who file after that date.

For the DTVSV Scheme, four distinct forms have been announced. These are listed below:
Form 1: Declaration and Undertaking Form submitted by the Declarant
Form-2: Certificate Application Form to Be Issued by Designated Authority
Form 3: Payment Intimation Form for Declarant
Form 4: Order to Complete and Finally Pay Tax Arrears to the Designated Authority

The DTVSV Scheme further stipulates that Form-1 must be submitted individually for every disagreement; however, in cases where both the appellant and the income-tax authority have appealed the same ruling, only one Form-1 has to be submitted.

Form-3 payment notification must be completed and sent to the designated authority along with evidence of the withdrawal of any appeal, objection, application, writ petition, special leave petition, or claim.

The declarant must provide Forms 1 and 3 online. These forms will be accessible via the Income Tax Department’s electronic filing website, http://www.incometax.gov.in.

According to the ministry, this is just another effort by the government to handle lawsuits.