The Dispute to Trust Scheme has come into effect from Monday, October 1, 2024. The government has started this scheme to quickly settle pending cases related to direct tax disputes. The purpose of this scheme is to quickly settle old income tax cases.
Every person whose case is pending regarding income tax dues can take advantage of the Dispute to Trust Scheme 2024. However, those who are facing serious income tax cases like undeclared income abroad cannot take advantage of this scheme.
The Central Board of Direct Taxes (CBDT) has implemented the Direct Tax Dispute to Vishwas Scheme under the Finance No. 2 Act, 2024. During this, the rules related to the scheme have also been implemented. 4 different forms have been given for the Dispute to Vishwas Scheme.
Form-1
In Form-1 you will file the declaration and also give the undertaking (Form for filing declaration and Undertaking by the declarant)
Form-2
Form-2 will be for Certificate to be issued by Designated Authority
Form-3
Form for intimation of payment by the declarant under Form-3
Form-4
Form 4 will contain information regarding the full and final settlement of tax arrears by the authority (Order for Full and Final Settlement of tax arrears by Designated Authority)
The special thing about CBDT's Direct Tax Dispute to Vishwas Scheme is that the settlement amount of the new appellant will be less than that of the old appellant. Under this scheme, such taxpayers will also get the benefit of lower settlement amount, who will file the declaration on or before 31 December 2024.
The Direct Tax Vivaad se Vishwas Scheme also provides that Form 1 will be filed separately for each dispute. The payment details will have to be given in Form-3 and submitted to the designated authority along with the appeal, objection, application, writ petition, special leave petition or proof of withdrawal of claim. Form 1 and Form 3 will be submitted online by the declarant. These forms will be made available on the e-filing portal of the Income Tax Department i.e. www.incometax.gov.in.
For your information, let us tell you that about 2.7 crore tax dispute cases are pending on different legal platforms. The monetary value of tax related to these cases is about Rs 35 lakh crore.