Now the tension of millions of taxpayers will end

The government will launch the Direct Tax Dispute Resolution Scheme Vivaad se Vishwas 2.0 from October 1. Vivaad se Vishwas Scheme 2.0 was originally announced in Budget 2024-25 presented in July to resolve some pending income tax disputes. The Finance Ministry said that the Central Government fixes October 1, 2024 as the date for implementation of Direct Tax Vivaad se Vishwas Scheme 2024.

This scheme was started so that the tax matter is settled at the tax forum itself instead of going to the court. If the case is going on in the court, it can drag on for a long time. Apart from mental trouble to the taxpayer, this can also affect the business or trade. The tax department gives exemption from interest and penalty in this and only the amount of disputed tax has to be paid. Resolving the matter by sitting together increases the trust between the taxpayer and the administration and provides an opportunity to avoid court proceedings. Those who want to avail the benefit of this scheme have to make the payment by the prescribed date. Disputes continue in various legal forums over 2.7 crore direct tax demands amounting to about Rs 35 lakh crore. Finance Minister Nirmala Sitharaman had said in her budget speech that the government will continue its effort to simplify taxes, improve taxpayer services, provide tax certainty and reduce litigation while increasing revenue. The government brought the first phase of the Vivaad se Vishwas scheme for cases under direct taxes in 2020. About one lakh taxpayers took advantage of this scheme and the government received tax of about Rs 75,000 crore.

In this scheme, the taxpayer has to pay only the disputed tax. No interest or penalty is levied by the tax department on this amount. The identity of the taxpayer who takes advantage of this scheme is not revealed by the government. From time to time, the time limit of this scheme has been extended so that more cases can be settled. Businessmen have also been included in this case who can settle their tax dispute. Whatever amount is decided under the scheme, a fixed date is fixed for it by which the taxpayer has to pay the money. If a case of less than Rs 5 crore is caught in the raid, then the benefit of this scheme can be availed. However, if the case is going on in the court and the punishment has been announced, then the benefit of the Vivaad se Vishwas scheme cannot be availed.