Direct Tax Vivad Se Vishwas Scheme 2024 going to Launch on October 1, 2024

The Finance Ministry has announced the introduction of the second edition of the Direct Tax Vivad Se Vishwas Scheme 2024 (VSV 2.0), which will take effect on October 1, 2024. This initiative attempts to eliminate continuing income tax disputes, building on the success of its predecessor.

In a ministry notification, it was confirmed that VSV 2.0 will allow taxpayers and the Income Tax Department to resolve issues through a shortened appeals process.

Finance Minister Nirmala Sitharaman emphasized the scheme’s significance in her budget speech, adding that it will provide a method for submitting appeals to several appellate bodies, including the Joint Commissioner of Income-tax (Appeals), the Income Tax Appellate Tribunal (ITAT), and higher courts.

The Notification Read as Follows:

In exercise of the powers conferred by sub-section (2) of section 88 of the Finance (No. 2) Act, 2024 (15 of 2024), the Central Government hereby appoints the 1st day of October 2024 as the date on which the Direct Tax Vivad Se Vishwas Scheme, 2024 shall come into force.

Objectives of VSV 2.0

The major purpose of VSV 2.0 is to provide a cost-effective procedure for resolving disputed issues, reducing the burden of litigation on taxpayers and the judiciary. The scheme includes appeals, writ petitions, and special leave petitions pending as of July 22, 2024, and waives penalties and interest for settlements, ensuring that no prosecution would be undertaken in cases concluded via the scheme.

Certain cases, such as those involving searches, prosecutions, or concealed foreign income, are not permitted. The scheme will also not benefit taxpayers who are subject to certain legal restrictions or have committed major offences.

For Official Notification Download PDF Given Below: