What is Actually Vivad Se Vishwas 2.0?

• Vivad Se Vishwas 2.0 is a scheme by the Income Tax Department to help people settle their ongoing tax disputes. Rather than going through long court cases, taxpayers can just pay the disputed tax amount and close the case.
• This is the second version of the scheme. The first one, which started in 2020, helped solve many tax disputes across the country. The government assumes this new version will also reduce court cases and help settle pending matters faster.

Who is eligible for Vivad Se Vishwas 2.0?

• You can apply for this scheme if you or the Income Tax Department had filed an appeal, writ petition, or Special Leave Petition (SLP) that was still not settled as of July 22, 2024.
• You can also apply if you have raised objections before the Dispute Resolution Panel (DRP) under Section 144C of the Income Tax Act.
• Additionally, you can take part in the scheme if you submit your declaration under Section 90 of the Finance (No. 2) Act, 2024.

Why is it essential?

Under this scheme, disputes related to the income tax which left incomplete in past are covered. Like disputes left with the Commissioner of Income Tax (Appeals), Income Tax Appellate Tribunal (ITAT), High Courts, and even the Supreme Court.

The main motive of this scheme is to reduce pressure or burden from the court and make it easier for taxpayers to resolve their old pending tax-related cases. By giving relief from penalties and interest, the government is encouraging taxpayers to clear their dues quickly. This also helps the government collect money without going through long court cases.