CBDT Notifies Direct Tax Vivad Se Vishwas Rules, 2024 to Resolve Tax Disputes

The Central Government has officially announced the Direct Tax Vivad se Vishwas Rules, 2024, through G.S.R. 584(E) in alignment with the Finance (No. 2) Act, 2024. These rules aim to streamline dispute resolution in direct taxation and are effective immediately upon publication in the Official Gazette.

Key Highlights

1. Short Title and Commencement:
   • The rules will be known as the Direct Tax Vivad se Vishwas Rules, 2024, and come into force on the date of publication.
2. Definitions:
   • The rules define various terms such as “dispute,” “old appellant case,” and “new appellant case,” clarifying the scope of disputes covered.
3. Amount Payable:
   • Declarants can file a declaration by December 31, 2024, with varying amounts payable based on the timing of their declarations, as detailed in the newly established tables.
4. Filing Process:
   • Declarations must be made using specific forms (Form-1 for declarations, Form-2 for certificates, etc.), and verification is mandatory by the declarant or an authorized person.
5. Computing Disputed Tax:
   • Provisions are included for cases involving reductions in losses or unabsorbed depreciation, and in Minimum Alternate Tax (MAT) credits, allowing declarants options on how to proceed with their disputed amounts.
6. Guidelines for Implementation:
   • The Principal Director General of Income-tax (Systems) will establish procedures, formats, and standards to ensure the smooth processing of declarations and disputes.

Implications for Taxpayers

These new rules are designed to provide a clearer framework for resolving disputes, potentially reducing litigation and improving compliance. Taxpayers are encouraged to familiarize themselves with the definitions and procedures outlined to take full advantage of the provisions offered.

Official copy of the notification has been attached