CBDT Notifies Rules, Forms To Settle Pending Income Tax Dispute Cases  

New Delhi: The Central Board of Direct Taxes (CBDT)  has said that it has issued notification stating rules and forms for implementation of “Direct Tax Vivad Se Vishwas Scheme, 2024”  from October 01, 2024. The notification specifies that the scheme intends to settle pending  income tax disputes of the citizens with the Income Tax (I-T) Department. The CBDT  has issued four different forms for smooth application of the direst tax dispute resolution process. A tax payer can find all these forms on the e-filing portal of the I-T Department.

To incentivise  the tax payers for early resolution of their respective disputes, the tax department has reduced settlement amount for those citizens who would file for the resolution scheme on or before December 31, 2024.

What does the four forms of I-T Department entail?

Form-1:

Citizens can use it t file for declaration and undertaking. The tax payer needs to  file this form separately for each dispute. It can be filed electronically.

Form-2:

The tax payer is required to file the Form-2 for procurement of Certificate that will be issued by Designated Authority

Form-3:

If the declarant wants to submit proof of payment made by him, then, he will have to fill Form-3.  ..

Form-4:

If the tax payer needs full and final settlement of tax arrears, then, he needs to file Form-4

According to the CBDT’s notification, currently, around 2.7 crore cases of income tax disputes are currently pending. These cases together constitute  dispute worth Rs 35 lakh crore.

This is the second time the government has rolled out such a scheme. The Finance Ministry had started this initiative back in 2020. About one lakh taxpayers could settle disputes with the I-T Department. The government had earned taxes of about Rs 75,000 Crore when such dispute resolution scheme was rolled out in 2020.