CBDT Circular 19/2024: Guidance Note 2/2024 on Direct Tax Vivad Se Vishwas Scheme 2024
Guidance Note 2/2024: The Direct Tax Vivad Se Vishwas Scheme, 2024 (commonly referred to as the DTVSV Scheme, 2024 or simply the Scheme) has been introduced under Chapter IV of the Finance (No.2) Act, 2024. This innovative Scheme aims to provide a streamlined resolution process for pending income tax disputes. Its primary objectives include reducing the backlog of income tax litigation, facilitating timely revenue generation for the Government, and offering taxpayers peace of mind, certainty, and significant savings in terms of time and resources that would otherwise be consumed in prolonged litigation.
Key Highlights of the DTVSV Scheme, 2024
- Scheme Launch Date: The DTVSV Scheme officially commenced on October 1, 2024, providing taxpayers a much-needed mechanism to resolve disputes efficiently.
- Rules and Forms Notification: Rules and forms to enable the implementation of the Scheme were notified on September 20, 2024, ensuring clarity and ease of compliance for stakeholders.
Need for Guidance Notes
Since the enactment of the Scheme, stakeholders have raised numerous queries regarding its provisions. To address these concerns and ensure smooth implementation, the Board, empowered by Section 97 of the DTVSV Scheme, 2024, issued Guidance Note 1/2024 in the form of frequently asked questions (FAQs) through Circular No. 12 of 2024 on October 15, 2024. This initial guidance provided essential clarifications to taxpayers.
However, new questions have emerged, necessitating further clarification. To address these additional concerns, Guidance Note 2/2024 has been issued, expanding upon the existing framework and replacing certain provisions for better clarity.
Updates in Guidance Note 2/2024
- Modification of FAQ No. 8 from Guidance Note 1/2024: In this updated note, FAQ No. 8 of Guidance Note 1/2024 has been revised and included as FAQ No. 36. As a result, FAQ No. 8 of the earlier note is now considered omitted.
- Improved Clarity for Taxpayers: The updated guidance note aims to enhance taxpayers’ understanding of the Scheme, ensuring greater awareness and confidence in utilizing the provisions effectively.
Benefits of the DTVSV Scheme, 2024
- Efficient Dispute Resolution: Offers a faster, hassle-free alternative to protracted litigation.
- Cost Savings: Reduces financial and time investments for both taxpayers and the Government.
- Certainty and Transparency: Provides clear resolutions, enabling taxpayers to focus on growth and compliance without lingering disputes.
Conclusion
The Direct Tax Vivad Se Vishwas Scheme, 2024 represents a significant step towards simplifying tax dispute resolution in India. With the introduction of Guidance Note 2/2024, stakeholders now have access to a more comprehensive resource for understanding and leveraging the Scheme’s provisions. Taxpayers are encouraged to review these updates to fully benefit from this forward-looking initiative.
Stay informed and take advantage of the DTVSV Scheme to resolve pending disputes effectively and ensure compliance with India’s tax framework.
Also Read: Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024: A Comprehensive Guide
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