Govt sets April 30 deadline for filing declarations under Vivad se Vishwas

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The Ministry of Finance on Tuesday notified April 30, 2025, as the last date for filing declarations under the Direct Tax Vivad se Vishwas Scheme, 2024, which aims to resolve long-pending tax disputes. The scheme, announced in the Union Budget 2024, became effective from October 1. However, until now, no deadline had been specified.

 

The scheme offers taxpayers the opportunity to settle disputed tax demands by paying the full disputed amount while availing a waiver on interest and penalties. Taxpayers intending to benefit from the scheme must file the declaration by April 30, 2025. No extension has been indicated so far.

 

“It is a very attractive scheme for those whose matters are pending in appeals and where chances of success are low. They must avail the scheme to avoid the interest and penalties that are imposed monthly,” said Chetan Daga, partner, AdvantEdge Consulting.

 

As per the notification, the declaration regarding arrears must be submitted to the designated authority in accordance with the dispute resolution provisions under Section 90 of the Finance Act, 2024.

 

“If taxpayers have any income tax appeals pending before appellate authorities such as the Commissioner of Income Tax (Appeals), Income Tax Appellate Tribunal, High Court, Supreme Court, or cases pending before the Dispute Resolution Panel, they can settle their disputes under this scheme by April 30,” said Avinash Gupta, partner, APT and Co LLP.

 

“In case the assessees miss the opportunity, they will have to wait for the appellate order. They may also face penalty and interest if the judgement goes against them,” Gupta added.

 

According to Ved Jain, former president of the Institute of Chartered Accountants of India and tax expert, taxpayers who have not filed Form No 1 and intend to opt for this scheme must ensure the form is submitted by April 30, 2025.

 

“Payment of tax is to be made within 15 days of receipt of Form No 2 in response to the filing of Form No 1,” Jain said.