Vivad Se Vishwas 2.0 Tax Resolution Scheme to Launch on October 1

Vivad Se Vishwas 2.0 Tax Resolution Scheme to Launch on October 1

The government has announced the launch of the Vivad Se Vishwas 2.0 scheme, aimed at resolving ongoing direct tax disputes. Set to take effect on October 1, 2024, this initiative was introduced in the Union Budget 2024-25 with the goal of reducing litigation and settling approximately 2.7 crore income tax disputes, which collectively involve around ₹35 lakh crore.

Finance Minister Nirmala Sitharaman emphasized that the scheme is part of the government's broader efforts to simplify taxation, improve services for taxpayers, and enhance revenue collection by minimizing litigation.

Eligibility Criteria

Taxpayers with pending disputes or appeals as of July 22, 2024, are eligible to participate. The scheme covers cases in:

• The Supreme Court, High Courts, Income Tax Appellate Tribunal (ITAT), and Commissioner/Joint Commissioner (Appeals)
• Disputes before the Dispute Resolution Panel (DRP)
• Revision petitions awaiting decisions from the Commissioner of Income Tax

Both taxpayers and tax authorities involved in disputes can opt for this scheme, and official rules and forms will be released soon.

How the Scheme Works

Participants can resolve their pending cases by settling tax demands at reduced liability. The scheme builds on the success of the original Vivad Se Vishwas initiative launched in 2020, which saw around 1 lakh taxpayers use the program, generating nearly ₹75,000 crore for the government.

Vivad Se Vishwas 2.0 is expected to target more complex and high-value disputes, providing a comprehensive solution for resolving long-standing tax issues.