Vivad Se Vishwas Scheme 2024 Last Date On December 31 - Are You Eligible? See Criterion

The Income Tax Department UP & West announced the last date for filing of declaration under the Vivad Se Vishwas Scheme. The filing is needed to avoid any tax disputes in the future.

What Did The Income Tax Department Write?

“Kind Attention TaxPayers 🚨 The Deadline for filing your declaration under Vivad Se Vishwas Scheme 2024 is 31st December, 2024 . Hurry up to avail the opportunity to settle tax disputes.” wrote Income Tax Department UP & West on X.
 

The department also attached particulars about the kind of disputes they would cover, including tax, penalty, TDS, interest, fee, etc.

Income Tax Returns: Eligibility 

The circular issued by the department also spelled out the eligibility for filing returns:

• Appeal/writ filed on or before 22.07.2024 and such appeal/writ is pending as of 22.07.2024 
• A taxpayer who has filed objections before Dispute Resolution Panel (DRP) and DRP has not issued any directions on or before 22.07.2024 
• The taxpayer in whose case DRP has issued direction but Assessing Officer has not completed the assessment on or before 22.07.2024
• Taxpayer who has filed an application for revision u/s 264 of the Act and such application is pending as of 22.07.2024

Income Tax Returns: Key Dates 

The circular also said, “File your declaration under the scheme on or before 31.12.2024 to pay a lesser amount for settlement of appeal. On filing declaration on or after 01.01.2025, the settlement amount becomes higher.”

Income Tax Returns: The 87A Issue

The Mumbai High Court has postponed the last date to file income tax from December 31, 2024, to January 15, 2025. The delay is to ensure the citizens get maximum benefits under Section 87A.

What Did The High Court Say?

In a case titled, The Chamber of Tax Consultants through its President Vijay Bhatt … Petitioner V/s. Director General of Income Tax (Systems) & Ors, the Mumbai High Court said, "Central Board of Direct Taxes is hereby directed to forthwith issue requisite notification under Section 119 of the Act extending the due date for e-filing of the income-tax returns in relation to the assessees who are required to file a return of income by December 31, 2024, at least to January 15, 2025. This extension is to ensure that all taxpayers eligible for the rebate under Section 87A are allowed to exercise their statutory rights without facing procedural impediments."

The Chamber of Tax Consultants had filed the present PIL petition seeking a direction to the respondents to modify the system developed and put in place by the Tax Department for filing income-tax returns for Assessment Year 2024-2025
so as to allow the assessees at large to take complete benefit of the rebate available under Section 87A of the Income Tax Act, 1961. 

What Is The Section 87A Issue?

The rebate under Section 87A is available to individual taxpayers whose income does not exceed the specified threshold. The limit is Rs. 7 lakh under the new tax regime and Rs. 5 lakh under the old regime. If your income falls within these thresholds, your tax liability will be reduced to zero, says ClearTax.

In simpler terms, an individual with taxable income up to Rs 7 Lakhs can avail of a rebate that is lower than the payable income tax on total income, or Rs 25K, whichever is lower.

"The respondents have unilaterally disabled assessees from claiming rebate under Section 87A after 5 July 2024 by modifying the utility software for filing income-tax returns. As a result, if the returns are filed by the assessees using the software of the respondents after 5 July 2024, they are unable to claim the rebate." The Mumbai HC Noted.

It seems like the extension is issued to solve the section 87A issue and the associated technical issues around it.

Also Read: Income Tax Refund 2024: ITR Refund Delayed? Have You Missed Out On This Crucial Step? | Republic Business