Key insights: Vivad se Vishwas Scheme 2024 has been saved
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Key insights: Vivad se Vishwas Scheme 2024
Background
Buoyed by the success of the earlier Vivad Se Vishwas Scheme (VsV) of 2020 and the mounting backlog of income tax disputes, the Government has proposed to introduce VsV 2024 (VsV 2.0).
Applicability
Disputes/appeals, including writs and special leave petitions (Appeal[s]), whether filed by the taxpayer or the tax authorities are pending as on 22 July 2024 before the following forums:
- The Supreme Court, High Court, Income Tax Appellate Tribunal, Commissioner/Joint Commissioner (Appeals)
- The Dispute Resolution Panel (DRP) or where DRP directions have been issued but the final assessment order is awaited
- Revision petitions pending before the Commissioner of Income Tax
Other salient features
- Immunity from initiation of any proceedings in respect of an offence and imposition of penalty or interest regarding tax arrears is provided for matters opted under VsV 2.0.
- Declaration made under VsV 2.0 will not be considered as a precedent for the taxpayer or the tax authority in relation to the issues covered under the declaration.
Exclusions
The VsV 2.0 will not apply in certain cases, such as search and seizure, prosecution, undisclosed income/asset located overseas, proceedings under other specified laws being instituted, etc.
Miscellaneous
- VsV 2.0 will help reduce litigation and bring certainty for taxpayers.
- In cases where orders have been passed and not appealed as on 22 July 2024, but the time limit to file appeals has not expired, do not appear to be covered under VSV 2.0. The Government is expected to clarify this in due course.
- It may be noted that the Government will issue a notification specifying the date on which VsV 2.0 will come into force and its end date.