income tax
The government will launch the Vivad Se Vishwas 2.0 Direct Tax Dispute Resolution Scheme from October 1. The Vivad Se Vishwas 2.0 Scheme was originally announced in the Budget 2024-25 presented in July to resolve some of the pending income tax disputes. The Finance Ministry said that the Central Government has fixed October 1, 2024, as the date for implementing the Vivad Se Vishwas Direct Tax Scheme 2024.
The matter is worth so many crores of rupees.
Disputes are going on in various legal forums over 2.7 lakh crore direct tax claims worth around Rs 35 lakh crore. Finance Minister Nirmala Sitharaman said in her budget speech that the government will continue its efforts to simplify taxes, improve services to taxpayers, provide tax certainty and reduce litigation, besides increasing revenue. The government had started the first phase of the Vivad se Vishwas scheme in 2020 for cases related to direct taxes. Around one lakh taxpayers availed themselves of this scheme and the government received tax of around Rs 75,000 crore.
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Why was this plan initiated?
This scheme was initiated so that the tax matter can be resolved at the tax forum instead of going to court. If the case continues in court, it may drag on for a long time. Apart from causing mental problems to the taxpayer, this may also affect his business or trade. The tax department grants waiver of interest and penalty and only the disputed tax amount is required to be paid. Resolving the matter together increases trust between the taxpayer and the administration and provides an opportunity to avoid court proceedings. Those who want to avail the benefits of this scheme will have to make the payment before the due date.
You get this benefit from this scheme.
In this scheme the taxpayer has to pay only the disputed tax. The tax department does not levy any interest or penalty on this amount. The government does not reveal the identity of the taxpayer who is benefiting from this scheme. From time to time the duration of this scheme has been extended so that more cases can be settled. Businessmen who can settle their tax disputes have also been included in this case. Whatever be the amount fixed under the scheme, a fixed date is kept during which the taxpayer has to pay the money. If a case worth less than Rs 5 crore is detected in the raid, the benefit of this scheme can be availed. However, if the case is still in the court and punishment has been announced, then he will not be able to avail the benefits of the Vishwas Scheme due to the dispute.
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