Government Announces October 1 Start for Vivad Se Vishwas 2.0

The government has set October 1 as the commencement date for the Vivad Se Vishwas 2.0 tax dispute resolution scheme, originally announced in the Budget 2024-25. The scheme aims at resolving pending income tax disputes, with specific forms and rules to be released imminently.

The government has confirmed October 1 as the launch date for the Vivad Se Vishwas 2.0 tax dispute resolution scheme. This scheme, initially announced in the 2024-25 budget, aims to address various income tax disputes currently pending appeal.

The Finance Ministry officially declared, "The central government hereby appoints the 1st day of October, 2024 as the date on which the Direct Tax Vivad Se Vishwas Scheme, 2024 shall come into force."

This initiative seeks to resolve around 2.7 crore direct tax demands totaling approximately Rs 35 lakh crore, which are in dispute across different legal fora.

Finance Minister Nirmala Sitharaman emphasized the government's commitment to simplifying taxes, enhancing taxpayer services, providing tax certainty, reducing litigation, and increasing revenues. Deloitte India Partner Karishma R Phatarphekar noted that the rules and forms for VSV 2.0 are expected shortly, advising stakeholders to make informed decisions promptly given the limited time window.

Eligible taxpayers, with disputes or appeals pending before various courts and income tax tribunals as of July 22, 2024, can opt for the scheme. The initiative also includes cases pending before the Dispute Resolution Panel and revision petitions.

The initial 'Vivad se Vishwas' initiative in 2020 saw over 1 lakh taxpayers participating, generating approximately Rs 75,000 crore in taxes for the government.

(With inputs from agencies.)