Vivad Se Vishwas 2.0 Tax Resolution Scheme Launching on October 1: Key Details

The government is set to launch the Vivad Se Vishwas 2.0 tax resolution scheme on October 1, 2024, providing a significant opportunity for taxpayers to efficiently settle their disputes with the government. This initiative, announced during the Budget 2024-25, seeks to address income tax disputes that are currently under appeal.

The Vivad Se Vishwas 2.0 scheme aims to reduce litigation and resolve approximately 2.7 crore direct tax disputes, totalling an estimated ₹35 lakh crore. Finance Minister Nirmala Sitharaman highlighted that this scheme is part of ongoing efforts to simplify tax processes, enhance taxpayer services, and ultimately increase government revenue.

Eligibility Criteria

Taxpayers with pending income tax disputes or appeals as of July 22, 2024, can participate in the scheme. Eligible cases include:

• Disputes in the Supreme Court, high courts, Income Tax Appellate Tribunal (ITAT), and Commissioner/Joint Commissioner (Appeals)
• Matters pending 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 take part in the scheme.

How It Works

The specific rules and forms for the Vivad Se Vishwas 2.0 scheme are expected to be released shortly. Taxpayers can resolve their pending cases by settling tax demands at a reduced liability, making the process more accessible and less cumbersome.

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The original Vivad Se Vishwas scheme, launched in 2020, proved successful, with around 1 lakh taxpayers participating and enabling the government to collect nearly ₹75,000 crore. The 2.0 version aims to target more complex and high-value disputes, continuing the momentum of taxpayer engagement and dispute resolution.