Background and Rationale:

Direct Tax Vivad se Vishwas Scheme, 2024 was introduced under the Finance (No. 2) Act, 2024 to resolve pending direct tax disputes efficiently. It provides an opportunity to taxpayers to settle disputes by filing a declaration and paying the tax arrear with reduced interest and penalty.

To implement this time-bound dispute resolution mechanism effectively, the Central Government is required to notify a final date by which eligible taxpayers must file their declarations.

Detailed Provision Update:

The Central Board of Direct Taxes (CBDT), through this notification, has specified April 30, 2025 as the last date to file a declaration under Direct Tax  Vivad se Vishwas Scheme, 2024.

This deadline applies to any declarant intending to settle tax arrears under Section 90 of the Finance (No. 2) Act, 2024. The declaration must be submitted to the designated authority before or on this date.

Advantages of the Notification:

• Sets a clear, definitive deadline for declarations.
• Provides clarity to taxpayers planning to resolve disputes.
• Enables CBDT to proceed with processing and resolution post-declaration.

Implications and Future Prospects:

Taxpayers must act promptly to file declarations by the notified date to avail of benefits such as immunity from interest, penalty, and prosecution. After April 30, 2025, the window for filing declarations will close, and standard litigation procedures will resume for pending disputes.