CBDT issues FAQs on Direct Tax Vivad Se Vishwas Scheme 2024 to provide clarity

The Central Board of Direct Taxes (CBDT) has issued a Guidance Note in the form of Frequently Asked Questions (FAQs) to clarify the Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024. This scheme, announced in the Union Budget 2024-25, aims to resolve pending income tax disputes. The FAQs address eligibility criteria, procedural aspects, and benefits of the scheme. Key points include the conditions under which taxpayers can avail the scheme, the forms required for declarations, and the timelines for settlement. The scheme distinguishes between ‘new’ and ‘old’ appellants, offering lesser settlement amounts for new appellants. The objective is to reduce litigation, generate timely revenue, and provide certainty to taxpayers. The FAQs also clarify the roles of various forms, such as Form 1 for declarations and Form 3 for payment notifications. The guidance aims to assist taxpayers in understanding and utilizing the scheme effectively.