Income Tax Vivad Se Vishwas Scheme 2.0 comes into Effect; Know all about it

The Income Tax Department’s Vivad se Vishwas Scheme 2.0 was launched in early October. The scheme allows taxpayers to save money while settling disputes. According to official sources, the Income Tax Department has implemented the Vivad se Vishwas Scheme 2024 sothat the scheme can be used to end long-standing disputes.

Furthermore, cases involving large tax demands, interest, and penalties might be addressed by just paying the tax amount, and the large demand would be cancelled. This is an excellent opportunity to move forward without issue by reducing significant potential expenses and saving money.

The Income Tax Department decided to resolve disputes pending in the form of appeals until July 22 of this year. Disputes that are unresolved due to an appeal by the Income Tax Department can also be addressed by depositing 50% of the tax amount. Section 91 of the Income Tax Act requires taxpayers to apply in a prescribed format.

If the application is accepted, the tax must be deposited before December 31 of the current year. On late submission, an extra 10% tax will be levied on the tax. As of today, 5.50 lakh appeals were pending at various stages.

As a result, the scheme went into effect on October 1 with a specific notification. The notification of the scheme’s rules and format took effect on September 30. A Chartered Accountant stated that a similar initiative was established in 2020, with taxpayers benefiting in around 1.5 lakh cases.