Vivad Se Vishwas 2.0: Lower settlement for those filing by Dec. 31

Sub: Schemes

Sec: Eco

Context:

The Income Tax Department has set a deadline of December 31 to file declaration under Vivad Se Vish was 2.0 scheme.

Vivad se Vishwas scheme:

Launched by: Department of Expenditure, Ministry of Finance
Objective:
- To provide relief to the micro, small and medium enterprises (MSMEs) that have been affected by the COVID-19
- To resolve pending tax disputes and reduce litigation in a simple and swift manner.
Key features:
- It offers a one-time opportunity for MSMEs to settle their pending tax disputes by paying only the disputed tax amount and getting a waiver of interest and penalty.
- Early compliance (before a set date) allows for the waiver of interest and penalty.
- It provides immunity from any future prosecution or penalty for the settled cases.

Vivad se Vishwas 2.0:

The scheme was announced in the Union Budget 2023-24to resolve pending appeals in income tax disputes. The scheme shall come into forcefrom October 1.
The Scheme provides for lesser settlement amounts for a ‘new appellant’ in comparison to an ‘old appellant’.
It also provides for lesser settlement amounts for taxpayers who file declaration on or before 31^st December 2024.