1. 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 has appointed the 1st day of October, 2024 as the date on which the Direct Tax Vivad Se Vishwas Scheme, 2024 shall come into force.
2. Keeping in view the success of the previous Vivaad Se Vishwas Act, 2020 and the mounting pendency of appeals at CIT(A) level, introduction of a Direct Tax Vivad se Vishwas Scheme, 2024 is proposed with the objective of providing a mechanism of settlement of disputed issues, thereby reducing litigation without much cost to the exchequer.
3. The scheme allows taxpayers to settle appeals, writ petitions, and special leave petitions pending as of this cut-off date before the Supreme Court, High Courts, ITAT, Commissioner (Appeals), and Joint Commissioner (Appeals). 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.
4. Settling disputes under VSV 2.0 waives penalties and interest and ensures no prosecution will be initiated. However, appeals involving search cases, prosecution cases, undisclosed foreign income or assets are excluded from VSV 2.0.5.
-- Courtesy: CMA Rajni Chawla