Vivad Se Vishwas Scheme 2024 (VSV 2.0)

About Vivad Se Vishwas Scheme 2024 (VSV 2.0):

• The scheme aims to reduce ongoing litigations related to income tax.
• VSV 2.0 will enable taxpayers and the Income Tax Department to resolve disputes through a streamlined appeals process.
• It will provide a mechanism for filing appeals across various appellate forums, including the Joint Commissioner of Income-tax (Appeals), the Income Tax Appellate Tribunal (ITAT), and higher courts.
• The scheme covers appeals, writ petitions, and special leave petitions pending as of July 22, 2024, and will waive penalties and interest for settlements, ensuring no prosecution will be initiated for cases resolved under the scheme.
• The scheme also covers cases with objections filed before the Dispute Resolution Panel (DRP) where no final assessment order has been issued and pending revision applications before the Commissioner.
• However, certain cases are excluded from eligibility, including those involving searches, prosecutions, and undisclosed foreign income.
• Tax payer sunder specific legal restrictions or serious offenses will also not benefit from the scheme.
• The primary goal of VSV 2.0 is to provide a cost-effective mechanism for settling disputed issues, thereby alleviating the burden of litigation on taxpayers and the judicial system. 

Q1: What is Direct Tax?

Direct taxes are directly levied on individuals and entities based on their income or profit earned without any intermediary. This results in the taxpayer or the person on whom the liability of paying such direct tax is imposed, to pay/discharge such liability by himself. Levies like income tax, corporation tax, etc. fall under the ambit of direct taxes. 

Source: Direct tax Vivad se Viswas Scheme 2024 to be operational from Oct 1