Govt Sets April 30 as Final Date for Vivad se Vishwas Declarations

Taxpayers aiming to resolve outstanding disputes under the Direct Tax Vivad se Vishwas Scheme, 2024 have until April 30, 2025, to file their declarations, the Ministry of Finance announced on Tuesday. The scheme, introduced in the Union Budget 2024 and active since October 1, 2024, had until now operated without a formal deadline.

Tax arrear declarations to follow official dispute resolution rules.

The initiative offers a streamlined resolution path for individuals and businesses with contested tax dues. By paying the entire disputed amount, applicants can secure a full waiver on interest and penalties—a significant financial relief for those facing prolonged litigation.

According to the official notification, declarations must be submitted in line with dispute resolution procedures outlined in Section 90 of the Finance Act, 2024.

“This is a beneficial opportunity for those with slim chances of winning their appeals,” said Chetan Daga, partner at AdvantEdge Consulting. “It allows taxpayers to clear their liabilities without additional penalties.”

Taxpayers with pending cases before the Commissioner of Income Tax (Appeals), the Income Tax Appellate Tribunal, the High Courts, the Supreme Court, or even the Dispute Resolution Panel can settle their dues under this framework. However, missing the April 30 deadline means waiting for appellate decisions and potentially incurring additional penalties and interest, explained Avinash Gupta, partner at APT and Co LLP.

Ved Jain, former ICAI president, advised taxpayers to submit Form No. 1 by the deadline if they wish to opt for the scheme. Once submitted, Form No. 2 will be issued by the authorities, following which payment must be made within 15 days.

As litigation continues to lock up over ₹11.8 trillion in revenue, the government hopes this resolution scheme will help reduce the massive backlog while giving taxpayers a final chance to settle dues on favourable terms.