The government has officially announced that the Vivad Se Vishwas 2.0 scheme for resolving direct tax disputes will begin on October 1, 2024. This initiative was first introduced in the Budget for 2024-25, presented in July, aimed at addressing specific income tax disputes currently under appeal.

In a notification from the finance ministry, it was stated, "The 1st day of October, 2024, is appointed as the date on which the Direct Tax Vivad Se Vishwas Scheme, 2024 shall come into force."

Currently, there are approximately 2.7 crore direct tax disputes valued at around Rs 35 lakh crore pending across various legal forums.

During her Budget speech, Finance Minister Nirmala Sitharaman emphasized the government’s commitment to simplifying the tax process, enhancing taxpayer services, ensuring tax certainty, reducing litigation, and boosting revenue.

Karishma R. Phatarphekar, a Partner at Deloitte India, mentioned that the rules and application forms for Vivad Se Vishwas 2.0 are expected to be released soon. She advised taxpayers to make informed decisions quickly due to the limited timeframe.

Eligible taxpayers can utilize this scheme if they have disputes or appeals pending as of July 22, 2024, in various legal settings, including the Supreme Court, high courts, the Income Tax Appellate Tribunal, and the Commissioner/Joint Commissioner (Appeals). It also covers cases before the Dispute Resolution Panel (DRP) and revision petitions pending with the Commissioner of Income Tax.

The initial Vivad Se Vishwas scheme was launched in 2020, successfully resolving disputes for about 1 lakh taxpayers and generating approximately Rs 75,000 crore in taxes for the government.

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