Direct Tax Vivad se Vishwas Rules, 2024

The Ministry of Finance issued Notification No. 104/2024 regarding the Direct Tax Vivad se Vishwas Rules, 2024. The rules, effective from the date of their publication, provide a framework for resolving tax disputes. Key terms are defined, including “dispute” which refers to appeals or objections filed by either the taxpayer or tax authorities. The notification explains the process for declarants, specifying the amounts payable depending on when a declaration is made. Declarants can file disputes in specific formats outlined in Forms 1 through 4. These forms cover various declarations, certifications, and undertakings required for resolution. The rules also address the treatment of disputed tax when favorable decisions have been obtained in appellate forums and provide options for dealing with the reduction of losses, unabsorbed depreciation, and Minimum Alternate Tax (MAT) credits. The procedure for verifying declarations, filing proofs of payment, and issuing necessary certificates is also outlined, with specific roles assigned to tax authorities for overseeing the processes.
MINISTRY OF FINANCE(Department of Revenue)NOTIFICATIONNew Delhi
Notification No. 104/2024-Income Tax | Dated: 20th September, 2024
G.S.R. 584(E).–In exercise of the powers conferred by section 99 of the Finance (No. 2) Act, 2024 (15 of 2024), the Central Government hereby makes the following rules, namely:―
1. Short title and commencement.–
(1) These rules may be called the Direct Tax Vivad se Vishwas Rules, 2024.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions. – (1) In these rules, unless the context otherwise requires,–
(a) “Act” means the Finance (No. 2) Act, 2024 (15 of 2024);
(b) “dispute” means appeal, writ or special leave petition filed by the declarant or the income-tax authority before the Appellate Forum, or objections filed before the Dispute Resolution Panel under section 144C of the Income-tax Act, 1961 (43 of 1961) and the Dispute Resolution Panel has not issued any direction, or Dispute Resolution Panel has issued direction under sub-section (5) of section 144C of the said Act and the Assessing Officer has not completed the assessment under sub-section (13) of that section, or application filed under section 264 of the said Act;
(c) “Form” means the Forms annexed to these rules;
(d) “issues covered in favour of the declarant” means issues in respect of which –
(i) an appeal or writ or special leave petition is filed by the income-tax authority before the appellate forum; or
(ii) an appeal is filed before the Commissioner (Appeals) or the Joint Commissioner (Appeals), or objections is filed before the Dispute Resolution Panel, by the declarant, on which he has already got a decision in his favour from the Income Tax Appellate Tribunal (where the decision on such issue is not reversed by the High Court or the Supreme Court) or the High Court (where the decision on such issue is not reversed by the Supreme Court); or
(iii) an appeal is filed by the declarant before the Income Tax Appellate Tribunal on which he has already got a decision in his favour from the High Court (where the decision on such issue is not reversed by the Supreme Court);
(e) “new appellant case” means any case other than an “old appellant case” where the declarant is an appellant after the 31st January, 2020 but on or before the specified date;
(f) “old appellant case” means where the declarant is an appellant on or before the 31st January, 2020, in respect of any tax arrear and continues to be an appellant at the same appellate forum on the specified date in respect of such tax arrear; and
(g) “section” means section of the Finance (No. 2) Act, 2024 (15 of 2024) as included in Chapter IV of the said Act.
(2) the words and expressions used in these rules and not defined but defined in the Act or the Income-tax Act, 1961, shall have the meanings respectively assigned to them in those Acts.
3. Amount payable by declarant.- (1) Where a declarant files a declaration to the designated authority under sub-section (1) of section 91 of the Act, on or before the 31st December, 2024, the amount payable by the declarant under the Act shall be as mentioned in column (3) of the Table specified in section 90 of the Act, subject to the conditions as provided in the First, Second and Third provisos of the said Table.
(2) Where a declarant files a declaration to the Designated Authority under sub-section (1) of section 91 of the Act, on or after the 1st January, 2025 but on or before the last date, the amount payable by the declarant under the Act shall be as provided in column (4) of the Table specified in section 90 of the Act, subject to the conditions as provided in the First, Second and Third provisos of the said Table.
(3) Where the dispute includes issues covered in favour of declarant, the disputed tax in respect of such issues shall be the amount, which bears to tax, including surcharge and cess, payable on all the issues in dispute, the same proportion as the disputed income in relation to issues covered in favour of declarant bear to the disputed income in relation to all the issues in dispute.
4. Form of declaration and undertaking.- (1) The declaration for any dispute referred to in sub-section (1) of section 91 and the undertaking referred to in sub-section (4) of the said section shall be made in Form-1 to the designated authority and shall be filed separately in respect of each order:
Provided that where the appellant and the income-tax authority have both filed an appeal or writ petition or special leave petition in respect of the same order, single Form-1 shall be filed by the appellant.
(2) The declaration and the undertaking under sub-rule (1) shall be verified by the declarant or any person competent to verify the return of income on his behalf in accordance with section 140 of the Income-tax Act, 1961 (43 of 1961).
(3) The designated authority, on receipt of declaration, shall issue a receipt electronically in acknowledgement thereof.
5. Form of certificate by Designated Authority.- The Designated Authority shall issue a certificate referred to in sub-section (1) of section 92 electronically in Form-2.
6. Intimation of payment.- The intimation of payment as referred to in sub-section (2) of section 92, made pursuant to the certificate issued by the designated authority shall be furnished along with proof of withdrawal of appeal, objection, application, writ petition, special leave petition, or claim filed by the declarant to the designated authority in Form-3.
7. Order by designated authority.-The order by the designated authority under sub-section (2) of section 92, in respect of payment of amount payable by the declarant as per certificate issued under sub-section (1) of section 92, shall be in Form-4.
8. Laying down of procedure, formats and standards.- (1) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall lay down procedures, formats and standards for furnishing and verifying the declaration and undertaking in Form-1, under sub-rule (1) of rule 4, issuance of certificate in Form-2 under rule 5, intimation of payment and proof of withdrawal in Form-3 under rule 6 and issuance of order in Form-4 under rule 7.
(2) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the said declaration, undertaking, certificate, intimation and order.
9. Manner of computing disputed tax in cases where loss or unabsorbed depreciation is reduced.- (1) Where the dispute in relation to an assessment year relates to reduction in loss or unabsorbed depreciation to be carried forward under the Income-tax Act, 1961 (43 of 1961), the declarant shall have an option to –
(i) include the tax, including surcharge and cess, payable on the amount by which loss or unabsorbed depreciation is reduced in the disputed tax and carry forward the loss or unabsorbed depreciation by ignoring such amount of reduction in loss or unabsorbed depreciation; or
(ii) carry forward the reduced amount of loss or unabsorbed depreciation.
(2) Where the declarant exercises the option as provided in clause (ii) of sub-rule (1), he shall be liable to pay tax, including surcharge and cess, along with interest, if any, as a consequence of carrying forward the reduced amount of loss or unabsorbed depreciation in subsequent years:
Provided that the written down value of the block of asset on the last day of the year, in respect of which unabsorbed depreciation has been reduced, shall not be increased by the amount of reduction in unabsorbed depreciation:
Provided further that in computing the reduced amount of loss or unabsorbed depreciation to be carried forward in clause (ii) of sub-rule (1), one-half of the amount by which loss or unabsorbed depreciation is reduced shall be considered for reduction, if such reduction is related to issues covered in favour of declarant.
10. Manner of computing disputed tax in cases where Minimum Alternate Tax (“MAT” in short) credit is reduced.- (1) Where the dispute in relation to an assessment year relates to reduction in MAT credit to be carried forward, the declarant shall have an option to –
(i) include the amount by which MAT credit to be carried forward is reduced in disputed tax and carry forward the MAT credit by ignoring such amount of reduction, or
(ii) carry forward the reduced MAT credit.
(2) Where the declarant exercises the option as provided in clause (ii) of sub-rule (1), he shall be liable to pay tax, including surcharge and cess, along with interest, if any, as a consequence of carrying forward reduced MAT credit in subsequent years:
Provided that in computing the reduced amount of MAT credit to be carried forward in clause (ii) of sub-rule (1), one-half of the amount by which MAT credit is reduced shall be considered for reduction, if such reduction is related to issues covered in favour of declarant.
Explanation.– For the purposes of this rule MAT credit means the tax credit as provided in section 115JAA or section 115JD of the Income-tax Act, 1961 (43 of 1961).

FORM-1(See rule 4)FORM FOR FILING DECLARATION UNDER SUB-SECTION (1) AND UNDERTAKING UNDER SUB-SECTION (4) OF SECTION 91 OF THE FINANCE (NO. 2)ACT, 2024(UNDER THE DIRECT TAX VIVAD SE VISHWAS SCHEME, 2024)

PART A – GENERAL INFORMATION

PAN (mandatory field)

TAN (man-datory if TAN based appeal)

Mobile No.

Aadhaar No.

Name of the appellant

Email Address

Appeal Reference Number (ARN) [in case both assessee and deptt are in appeal against the same order, provide both the ARNs](Add one row)

Assessment Year

Financial Year
(to be furnished only if TAN based appeal)

INFORMATION RELATING TO ELIGIBILITY

Whether the applicant is appellant in terms of section 89 of the DTVSV and is not ineligible to apply in terms of section 96 of DTVSV?
Yes
No

Option exercised by the Appellant
Whether opting to pay tax on reduction of losses or depreciation or MAT credit
If Yes, go to relevant schedule under Part A; If No, fill up Schedule XXVII under Part D

PART B – INFORMATION RELATING TO DISPUTE: (SEPARATE FORM-1 DECLARATION FOR EACH DISPUTE)

Nature of tax arrear
Disputed tax/ Disputed Interest/ Disputed Penalty/ Disputed Fee
Details of pending appeal / writ / SLP / DRP Objections / Revision application as on 22.07.2024.–
(1) Whether Appeal /objection/revision/Writ / SLP?
(2) Appellate Forum – JCIT(A)/CIT(A) / DRP/CIT/PCIT/ITAT / HC / SC
(3) Filed by – (Tick the relevant option) – Assessee / Department / Both
(4) Date of filing
(5) Whether DRP case?
(6) If yes, whether directions passed by DRP on or before 22.07.2024?
(7) If yes, whether order passed by AO? (If yes, not eligible)
(8) Applicable Schedule(s) (Dropdown to be provided in e-filing utility)
(Drop down to be provided in e-filing utility)
Based on the combination of nature of disputed tax, appellate forum and appellant relevant schedule will be filled by the declarant

Details of order by which tax arrear determined
(1) Section under which order passed
(2) Income-tax authority / Appellate Forum who passed the order
(3) Date on which order passed
(4) Whether it is a dispute related to section 194IA/ 194IB/194M – YES NO
(Drop down to be provided in the e- utility)
If declaration is with respect to appeal, writ, SLP for disputed tax including disputed TDS/TCS appeal, is there pending appeal, writ or SLP for interest or penalty imposed in relation to such disputed tax – YES/ NO
If yes, give details of such appeal, writ or SLP. (details to be captured in e-filing utility)

PART C – INFORMATION RELATED TO TAX ARREARS

(i)
Tax arrears (as per schedule)

PART D – INFORMATION RELATED TO AMOUNT PAYABLE

(i)
Total amount payable under DTVSV if declaration is made on or before 31.12.2024
Pick up from X from relevant schedule (in case of both assessee and deptt appeal, add them up)

(ii)
Total amount payable under DTVSV if declaration is made after 31.12.2024
Pick up from Y from relevant schedule (in case of both assessee and deptt appeal, add them up)

PART E – INFORMATION RELATED TO PAYMENTS AGAINST TAX ARREAR

(i)
Whether the declarant has made any payment against tax arrears before filing of declaration?
Yes
No

(ii)
If yes, please fill following details

S. No.
Date of payment
Amount
BSR Code
Challan Serial Number

1.

(i)
Total payments against tax arrears

PART F
Net amount payable/refundable by the appellant: Part D (i) or D (ii), as the case may be, less Part E (iii)

VERIFICATION

I…………………………………………………… (name in block letters) son/daughter of Shri/Smt. …………………………………………….. solemnly declare that to the best of my knowledge and belief the information given in this declaration is correct and complete and is in accordance with the provisions of the Direct Tax Vivad se Vishwas Scheme, 2024.

Form-2

[See rule 5]CERTIFICATE UNDER SUB-SECTION (1) OF SECTION 92 OF THEFINANCE (NO. 2) ACT, 2024(UNDER THE DIRECT TAX VIVAD SE VISHWAS SCHEME, 2024)
Whereas Mr./Mrs./M/s…………………………… (hereinafter referred to as the declarant) having PAN ……………………………. . and TAN (mandatory if TAN based appeal) ……………………………………. has filed a declaration under section 91 of the Finance (No.2) Act, 2024 (15 of 2024) in Form 1 vide acknowledgment number……………….. . dated Now, therefore, in exercise of the powers conferred by sub-section (1) of section 92 of the Act and after consideration of relevant material, the following amounts are hereby determined to be payable by the declarant towards full and final settlement of the tax-arrear covered by the said declaration under the Act:

Sl. No.

Assessment year

Financial year (to befurnishedonly if TANbasedappeal)

Details of dispute settled

Nature of tax-arrear (disputed tax / disputed penalty / disputed interest / disputed fee)

Tax-arrear Rs.)

Amountpayableundersection 90 of the Act
(Rs.)

Amount already paidagainst tax-arrear

Balance amount payable / refundable after adjusting amount already paid

AppealReferenceNumber

Date offilingAppeal

(1)

(2)

(3)

4(a)

4(b)

(5)

(6)

(7)

(8)

(9) = (7) –
(8)

The declarant is hereby directed to make the payment of sum payable, if any, as provided in column (9) above within fifteen days from the date of receipt of this certificate.
In case of non-payment of amount payable within the said period, the declaration under Form-1 shall be treated as void and shall be deemed never to have been made.
Place…………….Date …………………………..
……………………………………………..(Designated Authority)
Form-3
[See rule 6]INTIMATION OF PAYMENT UNDER SUB-SECTION (2) OF SECTION 92 OFFINANCE (NO. 2) ACT, 2024(UNDER THE DIRECT TAX VIVAD SE VISHWAS SCHEME, 2024)
To,
The Designated Authority……………………………………..……………………………………..
Sir/Madam,
1. Pursuant to the certificate received from designated authority in Form-2 vide certificate No.________________ dated _____ in respect of _____________________________________ (Name of the declarant) ___________ PAN and________________________ TAN(mandatory if TAN based appeal), for A.Y.___________ and F.Y.(to be furnished only if TAN based appeal)__________________ , for the Appeal Reference Number (add row)_____________________ and Date of Filing Appeal (add row)___________ , the detail of payments made is as under:

Sl.
BSR Code of Bank
Date of Deposit(DD/MM/YYYY)
Serial Number ofChallan
Amount (Rs)

(1)
(2)
(3)
(4)
(5)

2. The appeal, objections, application, writ petition, special leave petition, or claim has been withdrawn (please upload proof of withdrawal).
Place: ……………..
……………..Signature/Verification
Date: ……………..
Form-4[See rule 7]
ORDER FOR FULL AND FINAL SETTLEMENT OF TAX ARREAR UNDER SUB-SECTION (2) OFSECTION 92 READ WITH SECTION 93 OF FINANCE (NO. 2) ACT, 2024
(UNDER THE DIRECT TAX VIVAD SE VISHWAS SCHEME, 2024)
Whereas……………………………………………………………………….. (Name of the declarant) (hereinafter referred to as declarant) having PAN………………………….. And TAN (mandatory if TAN based appeal)…………………………………. , had made a declaration under section 91 of the Finance (No.2) Act, 2024 (15 of 2024);
And whereas the designated authority by order No. ………………………… dated………………….. determined the amount of……………………………… rupees payable / refundable by the declarant in accordance with the provisions of the Act and granted a certificate setting forth therein the particulars of the tax-arrear and the amount payable / refundable after such determination towards full and final settlement of tax-arrear as per details given below;
Now, therefore, in exercise of the powers conferred by sub-section (2) of section 92 read with section 93 of the Act, it is hereby certified that-
(a) a sum of Rs. ……………………… has been paid by the declarant towards full and final settlement of tax-arrear determined in the order No. …………………………. dated………..
(b) immunity is granted subject to the provisions contained in the Scheme, from instituting any proceeding for prosecution for any offence under the Income-tax Act, 1961 (43 of 1961) or from the imposition of penalty under the said enactment [as per section 93 of the Act], in respect of the tax-arrear as detailed in the table below:

Assessment year
Financial year(to befurnished onlyif TAN basedappeal)
Details of disputesettled
Nature of tax-arrear(disputed tax /disputed penalty /disputed interest /disputed fee)
Amount of tax-arrear

(1)
(2)
(3)
(4)
(5)

Appeal Reference Number
(3a)
Date of filing Appeal
(3b)

It is hereby clarified that making a declaration under this Act shall not amount to conceding the tax position and it shall not be lawful for the income-tax authority or the declarant being a party in appeal or writ petition or special leave petition to contend that the declarant or the income-tax authority, as the case may be, has acquiesced in the decision on the disputed issue by settling the dispute.
Place ……………….Date …………………
……………………………………….(Designated Authority)
To
(1) The declarant
(2) Assessing Officer
(3) Concerned Pr. Commissioner of Income-tax
(4) Concerned Appellate Forum
Note: Strike-off whatever is not applicable.
[Notification No. 104/2024, F. No. 370142/16/2024-TPL]SURBENDU THAKUR, Under Secy.