The Income Tax Department had launched the Vivad se Vishwas scheme to settle disputed tax issues of taxpayers. In which tax payers troubled by income tax disputes can get it done by paying less amount. Under this scheme, taxpayers can settle their disputes effectively and avoid additional penalties. Under this scheme, the penalty fee varies depending on the date of payment. The deadline for this scheme was set by the government as 31 December 2024, which has now been extended to 31 January 2025. Under this scheme, taxpayers can settle their disputed taxes with a lower amount for one more month. Stay tuned to the article till the end to know more about Vivad Se Vishwas Scheme.
Vivad Se Vishwas Scheme 2025
The Central Board of Direct Taxes (CBDT) has said in a circular that the due date for determining the due amount under Vivad Se Vishwas Scheme has been extended from December 31, 2024 to January 31, 2025. The benefit of this scheme will be available to all taxpayers who have pending income tax related cases, except those cases which involve serious allegations like undisclosed income abroad. Under this scheme, new appellants will have to pay 100% of the disputed tax and 25% of the disputed penalty or interest if they apply by January 31, 2025. At the same time, from February 1, 2025, these rates will increase to 110% and 30% respectively.
Taxpayers can resolve their disputed cases using this scheme, which also includes waiver of penalty and interest. This gives them an opportunity to close their cases by paying a lower amount. This scheme enables taxpayers to settle their outstanding tax liabilities by paying a specified percentage along with the disputed amount.
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Vivad Se Vishwas Scheme Details in Highlights
| Name of scheme | Vivad Se Vishwas Scheme |
| Launched by | Government of India |
| Beneficiaries | For taxpayers |
| Objective | Helping taxpayers resolve disputes with the Income Tax Department |
| Year | 2025 |
| Application Process | Online |
| Official Website | https://www.incometax.gov.in/ |
Vivad Se Vishwas Scheme Objective
The main objective of Vivad Se Vishwas Scheme is to help taxpayers resolve disputes with the Income Tax Department. By opting for this scheme taxpayers can settle their disputes effectively and avoid additional penalties. For old appellants, this amount will be 30 percent on January 31, 2025 and 35 percent on February 1, 2025. This scheme was announced by the Finance Minister in the first Budget of Modi 3.0. If you want to settle the tax dispute by taking advantage of this scheme, then you can settle it before the last date.
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Charges on Jan 31, 2025 vs Feb 1, 2025
| Serial Number | Nature of tax arrears | Amount payable where declaration made on or before January 31, 2025 | Amount payable where declaration made on or after February 1, 2025 & before last date |
| 1 | Tax arrears include disputed tax, interest, penalty (New appellant) | 100% of disputed tax | 110% of disputed tax |
| 2 | Tax arrears include disputed tax, interest, penalty (Old appellant) | 110% of disputed tax | 120% of disputed tax |
| 3 | Tax arrears related to disputed interest/penalty/fee (New appellant) | 25% of disputed interest/penalty/fee | 30% of disputed interest/penalty/fee |
| 4 | Tax arrears related to disputed interest/penalty/fee (Old appellant) | 30% of disputed interest/penalty/fee | 35% of disputed interest/penalty/fee |
The deadline has been extended
The due date for determining the due amount under the Vivad Se Vishwas (VSV) Scheme has been extended from December 31, 2024 to January 31, 2025.
Who can use Vivad Se Vishwas Scheme?
(VSV) Scheme, 2024 applies to cases where appeals have been filed in the Commissioner (Appeals), Dispute Resolution Panel (DRP), Income Tax Appellate Tribunal (ITAT), High Court or Supreme Court.
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These four forms have been issued by the government
Form 1 – In this you will give the declaration file and undertaking.
Form 2 – This will be for the certificate to be issued by the authority.
Form 3 – Under this form, payment information will be given by the declarant.
Form 4 – Information about full and final settlement of tax arrears to be given by the authority.
Form 1 and 3 are most important
In the Vivad se Vishwas government scheme, Form-1 will have to be filled separately for every dispute related to income tax. You will have to share payment information in Form-3. In this, you will have to submit the appeal, objection, application, writ petition or proof of withdrawal of claim to the authority.
Vivad Se Vishwas Yojana 2025 Online Form Download in PDF
1st Step:- First of all, go to the official website. i.e, https://www.incometax.gov.in/
2nd Step:- On the homepage, you have to click on the Vivad Se Vishwas Schemes option.
3rd Step:- Now Form 1, Form 2, Form 3, Form 4 will open on your screen.
4th Step:- After that, Whatever form you want to download, you can download that form.
FAQs
What is Vivad Se Vishwas Scheme?
The Vivad Se Vishwas (VSV) Yojana, introduced by Union Finance Minister Nirmala Sitharaman in the Union Budget 2024-25, allows taxpayers with disputes/appeals to waive off their interest and penalty.
What is the objective of this scheme?
The objective of this scheme is to help taxpayers resolve disputes with the Income Tax Department.
Has the government extended the deadline for Vishwas scheme due to direct tax dispute?
The due date for determining the due amount under Vivad Se Vishwas has been extended from December 31, 2024 to January 31, 2025.