The government is set to introduce the Direct Tax Dispute Resolution Scheme, ‘Vivad se Vishwas 2.0,’ starting from October 1, 2024.
This scheme was announced during the Budget 2024-25 in July, aimed at resolving certain long-pending income tax disputes.
According to a notification from the Finance Ministry, October 1, 2024, has been fixed as the official date for implementing the ‘Vivad se Vishwas Scheme 2024.’
Addressing Long-standing Disputes
Currently, there are ongoing disputes involving over 2.7 crore direct tax demands, amounting to approximately Rs 35 lakh crore, across various legal forums.
In her budget speech, Finance Minister Nirmala Sitharaman emphasized the government’s commitment to simplifying taxes, improving taxpayer services, ensuring tax certainty, and reducing litigation, all while boosting revenue collection.
Previous Success of the Scheme
The first phase of the ‘Vivad se Vishwas’ scheme was launched in 2020 to resolve direct tax cases.
Over one lakh taxpayers benefitted from it, helping the government collect around Rs 75,000 crore in taxes. The new phase aims to build on this success and provide further relief to taxpayers.
Background of Vivad se Vishwas
The original ‘Vivad se Vishwas’ scheme was launched in 2020 to resolve tax disputes under direct taxes.
Nearly one lakh taxpayers benefited from it, helping the government collect around Rs 75,000 crore.
In the recent budget speech, Finance Minister Nirmala Sitharaman emphasized the government’s ongoing commitment to simplifying taxes, improving taxpayer services, ensuring tax certainty, and reducing litigation, all while boosting revenue.
