Vivad se Vishwas scheme

Vivad se Vishwas scheme

Vivad se Vishwas scheme is a direct tax scheme announced in Budget 2020, for settling tax disputes between individuals and the income tax department. The objective to reduce pending income tax litigation, generate timely revenue for the Government and to benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the long-drawn and vexatious litigation process.

• Earlier, the scheme offered complete waiver on interest and penalty to the taxpayers with a full and final settlement of the dispute if the scheme was availed by March 31, 2020. An individual opting for settlement after March 31, 2020 was required to pay additional 10 per cent penalty on the disputed tax amount.
• As per the scheme income tax disputes settled under it cannot be reopened in any other proceeding by the income tax department or any other designated authority.
• At present, there are as many as 4,83,000 direct tax cases pending in various appellate forums i.e. Commissioner (Appeals), ITAT, High Court and Supreme Court.