Vivad Se Vishwas Scheme: Quick Resolution for Tax Disputes

Introduction to the Scheme The Vivad Se Vishwas Scheme was launched in FY 2019-20 by the Income Tax Department to resolve pending tax disputes swiftly. Objective Aimed at reducing the backlog of tax-related disputes in India, it allows taxpayers to settle cases by paying the disputed tax and a portion of the penalty or interest.

Dispute Settlement Terms Taxpayers pay 100% of the disputed tax and 25% of the disputed penalty, interest, or fee. This grants them immunity from further interest, penalty, and prosecution. Extended Due Date The scheme's deadline for filing declarations was extended to September 30, 2021, to accommodate challenges posed by the COVID-19 pandemic.

Eligibility Applicable for disputes related to assessments or reassessments under the Income-tax Act. It covers disputes involving tax, interest, penalty, or fees. Filing a Declaration Login to Income Tax Portal: Visit and log in using your credentials. Access the Scheme: Select the Vivad Se Vishwas option. Fill Out the Forms: Complete Form-1 with necessary details and Form-2 for final submission. Submit Documents: Use DSC (Digital Signature Certificate) or EVC (Electronic Verification Code) for verification.

Benefits Faster dispute resolution, reduced litigation costs, and relief from further penalties and prosecution. Impact Helped streamline pending tax disputes, providing clarity and closure to both taxpayers and the government.