VsV scheme: I-T dept extends deadline to avail interest, penalty waiver till Jan 31

The income tax department on Monday extended till January 31 the due date for determining the tax dues and filing declaration under the Vivad Se Vishwas scheme for waiver of interest and penalty.

As per the original rules of the Direct Tax Vivad Se Vishwas scheme, 2024, taxpayers filing declaration before December 31, 2024, had to pay 100 per cent of the disputed tax demand. Interest and penalty would be waived in such cases.

Through a circular, the Central Board of Direct Taxes (CBDT) extended the due date for determining the amount payable under the VsV scheme to January 31, 2025, from December 31, 2024.

As per the circular, declarations filed on or after February 1, 2025, 110 per cent of the disputed tax demand will have to be paid by the taxpayer.

The scheme can be availed by taxpayers who have disputes/appeals, including writs and special leave petitions(Appeals) whether filed by the taxpayer or the tax authorities are pending as on July 22, 2024, before the Supreme Court, High Courts, Income Tax Appellate Tribunal, Commissioner/Joint Commissioner (Appeals).

Around 2.7 crore direct tax demands totalling about Rs 35 lakh crore are being disputed at various legal foras.

VsV scheme, 2024, was announced in Budget 2024-25 on July 23 and October 1, 2024, was notified as the start date for availing the scheme.