Taxpayers who filed the declaration before December 31, 2024 had to pay 100 percent of the disputed tax demand. There is a provision to waive interest and penalty in such cases.
Income Tax Relief
If you also have any kind of dues of the Income Tax Department from the previous financial year or any kind of penalty has been imposed on you, then this news is of your use. Yes, the Income Tax Department has extended the date for filing information for settling tax dues and exemption of interest and penalty under the Dispute to Trust Scheme till January 31.
Deadline extended from 31 December to 31 January
As per the original rules of the Direct Tax Dispute to Trust Scheme, 2024, taxpayers filing declaration before December 31, 2024 had to pay 100 per cent of the disputed tax demand. There is a provision to waive interest and penalty in such cases. A circular from the Central Board of Direct Taxes (CBDT) said that the last date for determining the amount payable under the Dispute to Trust Scheme has been extended from December 31, 2024 to January 31, 2025.
110 percent taxpayers will have to pay
According to the circular, taxpayers will have to pay 110 percent of the disputed tax demand on declarations made on or after February 1, 2025. This scheme can be availed by such taxpayers in whose case there is a dispute or appeal has been filed. This includes writs and special leave petitions (appeals). Whether they have been filed by the taxpayer or the tax officers. This includes cases which are pending before the Supreme Court, High Court, Income Tax Appellate Tribunal, Commissioner / Joint Commissioner (Appeal) till July 22, 2024.
Let us tell you that about 2.7 crore direct tax demands of about Rs 35 lakh crore are being disputed on various legal platforms. The Dispute to Trust Scheme, 2024 was announced in the budget for the financial year 2024-25 presented on July 23. The scheme came into effect from October 1, 2024.
What is the Dispute to Trust Scheme?
The Dispute to Trust Scheme is a special scheme launched by the Government of India, which aims to settle old disputes related to income tax and provide relief to taxpayers. Under this scheme, taxpayers can settle their disputed tax cases without any long legal process. In this, the pending dispute between the Income Tax Department and the taxpayer is resolved quickly and easily. Also, the taxpayer does not need to go through a long legal process.