The Vivad Se Vishwas 2.0 Scheme 2024 (VSV 2.0) is designed to help reduce ongoing disputes related to income tax. It makes it easier for taxpayers and the Income Tax Department to settle these disputes through a clear appeals process. Taxpayers can file appeals in different places, such as the Joint Commissioner of Income-tax (Appeals), the Income Tax Appellate Tribunal (ITAT), and higher courts. The scheme covers appeals, writ petitions, and special leave petitions that are pending as of July 22, 2024.
It allows taxpayers to settle their issues without paying penalties or interest, and there won’t be any legal action for cases that are resolved through this scheme. It also includes cases where objections have been raised before the Dispute Resolution Panel (DRP) if there’s no final assessment order yet. However, it does not cover cases related to searches, prosecutions, undisclosed foreign income, or taxpayers with serious legal issues.
About Vivad Se Vishwas Scheme
The Vivad Se Vishwas 2.0 Scheme will begin on October 1, 2024, allowing taxpayers to resolve ongoing tax disputes. This is the second version, following the successful first scheme from 2020, announced by Finance Minister Nirmala Sitharaman in the recent budget. Tax-related litigation has been increasing, with more cases going to appeal than being settled. The new scheme will cover disputes pending as of July 22, 2024, including appeals, writ petitions, and cases before the Dispute Resolution Panel.
Currently, around 27 million direct tax demands, totaling about Rs. 35 lakh crore, are unresolved in courts. Karishma R. Phatarphekar from Deloitte India highlighted the need for companies to review these pending cases, especially since tax rates will rise by 10% starting January 1, 2025. The first scheme saw about 1 lakh taxpayers participate, generating around Rs. 75,000 crore for the government. The new scheme aims to help taxpayers settle their disputes more easily.
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The objective of Vivad Se Vishwas 2.0 Scheme
Here are the key objectives of the Vivad Se Vishwas Scheme:
- The primary objective of the scheme is to minimize ongoing tax disputes and litigation in courts.
- The aim is to provide a clear and efficient process for taxpayers to resolve disputes.
- The scheme aims to offer taxpayers a chance to settle their tax issues without penalties or interest.
- The scheme aims to help taxpayers resolve disputes at a lower cost and without lengthy legal battles.
- To address the large number of pending tax cases in various legal forums.
- The aim is to encourage taxpayers to comply with tax regulations and settle outstanding issues.
- The scheme aims to cover various types of pending cases, including appeals and objections before relevant authorities.
Short Summary of Vivad Se Vishwas 2.0 Scheme
| Name of the Scheme | Vivad Se Vishwas 2.0 Scheme 2024 |
| Launched By | Government of India |
| Launch Date | On October 1, 2024 |
| Department | The Income Tax Department |
| Coverage | Pending disputes as of July 22, 2024, including appeals, writ petitions, and objections |
| Exclusions | Cases involving searches, prosecutions, undisclosed foreign income, and serious legal offenses |
| Current Pending Cases | Approximately 27 million direct tax demands totaling about Rs. 35 lakh crore |
| First Scheme Participation | About 1 lakh taxpayers; Rs. 75,000 crore collected |
| Goal | Provide a cost-effective mechanism for settling disputes and reduce the burden on the judicial system |
| Beneficiaries | Taxpayers with pending income tax disputes eligible for settlement. |
| Benefits | Waiver of penalties and interest, no prosecution for resolved cases |
| Objective | To reduce ongoing tax litigation |
| State | All States of India |
| Year | 2024 |
| Form of Benefit | Tax dispute resolution |
| Hosting Site | NIC (National Informatics Center) |
| Mode of Application | Online |
| Official Website | To be released soon |
Eligibility Criteria
Eligibility Criteria for the scheme are as follows:
- Must have pending income tax disputes or appeals as of July 22, 2024.
- Applicable Forums:
- Supreme Court
- High Courts
- Income Tax Appellate Tribunal (ITAT)
- Commissioner/Joint Commissioner (Appeals)
- Cases pending before the DRP are included.
- Must have revision petitions awaiting decisions from the Commissioner of Income Tax.
- The scheme is available for both taxpayers and tax authorities who are part of the disputes.
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Benefits of Vivad Se Vishwas 2.0 Scheme
Here are some key benefits of the scheme which are as follows:
- The scheme helps decrease ongoing tax disputes in courts.
- This scheme offers a faster way to settle tax issues.
- The scheme waives penalties and interest on settled disputes.
- The scheme ensures that no legal action for cases resolved under the scheme.
- It includes appeals, writ petitions, and disputes before tax authorities.
- It promotes timely resolution and compliance with tax laws.
- The scheme reduces legal costs associated with prolonged litigation.
- This scheme Provides clarity and certainty in tax matters.
Required Documents
To avail of the benefits under the scheme, candidates should have the following documents:
- Aadhar Card
- PAN Card
- Residence Certificate
- Dispute Details
- Appeal Documents
- DRP Objections
- Revision Petitions
- Tax Returns
- Payment Receipts
- Passport size Photograph
- Mobile Number
Important Dates
- Scheme Start Date: October 1, 2024
- Eligibility Cut-off Date: July 22, 2024 (for pending disputes)
- Deadline for Application Submission: To be announced
Vivad Se Vishwas 2.0 Scheme Application Process
The Vivad Se Vishwas Scheme 2024 will commence on October 1, 2024, allowing taxpayers to resolve ongoing tax disputes. Currently, the scheme is yet to be fully launched, and no official application process has been announced. It remains unclear whether applications will be accepted online or offline. Interested taxpayers are encouraged to stay informed through official government channels for updates on the application procedure. Once the official platform is operational, applicants will likely be able to submit their applications online to access the scheme’s benefits. Any further information about the application process will be shared as it becomes available. Stay connected for the latest updates regarding the scheme.
Contact Details
Income Tax Department Helpline:
- Phone: 1800 180 1961 / 1800 103 1961
- Email: contact[at]incometax[dot]gov[dot]in
FAQs
What is the Vivad Se Vishwas 2.0 Scheme?
It is a government initiative aimed at resolving ongoing income tax disputes and reducing litigation.
When does the scheme start?
The scheme will begin on October 1, 2024.
Who can participate in the scheme?
Taxpayers with pending income tax disputes or appeals as of July 22, 2024, can participate.
What types of disputes are covered?
The scheme covers appeals, writ petitions, and objections pending before various tax authorities.
Will there be penalties for settling disputes?
Penalties and interest will be waived for cases resolved under the scheme.
How can I apply for the scheme?
The application process has not been officially announced yet. Stay tuned for updates from government channels.