Vivad Se Vishwas scheme: Missed Dec 31 deadline? Govt extends due date for disputed tax demand

The Central Board of Direct Taxes (CBDT) on Monday extended the due date for determining the amount payable under the Direct Tax Vivad Se Vishwas Scheme to January 31, 2025. The deadline extension provides additional time for taxpayers to resolve tax disputes under the scheme.

Under the revised timelines, taxpayers filing declarations on or before January 31, 2025, will pay 100% of the disputed tax demand. Interest and penalty would be waived in such cases.

For declarations filed on or after February 1, 2025, the amount payable will increase to 110% of the disputed tax demand.

"The Central Board of Direct Taxes (CBDT), in exercise of its powers under sub-section (2) of section 97 of the Direct Tax Vivad Se Vishwas Scheme, 2024 ('the Scheme') extends the due date for determining amount payable as per column (3) of the Table specified in section 90 of the Scheme from 31st December, 2024 to 31st January, 2025," CBDT said in a circular.

The Vivad Se Vishwas (VsV) Scheme, 2024, allows taxpayers to settle pending disputes, including appeals, writs, and special leave petitions filed by either the taxpayer or tax authorities. Eligible disputes must have been pending as of July 22, 2024, before the Supreme Court, High Courts, Income Tax Appellate Tribunal, or Commissioner/Joint Commissioner (Appeals).

As per the scheme’s original provisions, taxpayers who filed declarations before December 31, 2024, were required to pay only the disputed tax amount, with interest and penalties waived.

The Vivad Se Vishwas scheme, announced in the Union Budget 2024-25, was launched on October 1, 2024, to resolve around 2.7 crore direct tax disputes amounting to ₹35 lakh crore.

The extension is expected to provide relief to taxpayers and boost the scheme’s adoption.