Direct Tax Disputes Resolution Scheme 2.0 Made Effective

INTRODUCTION

Currently, there is high pendency of tax cases before various appellate fora. In the year 2020, the Government introduced a direct tax disputes resolution scheme through the Direct Tax Vivad Se Vishwas Act, 2020 (popularly known as the 'Vivad Se Vishwas scheme']. The intent of the scheme was to reduce direct tax litigation pending before various courts / appellate fora, pursuant to which a significant number of tax disputes were settled.

The aforesaid scheme received an overwhelmingly positive response from the taxpayers. Encouraged by the success of the 2020 scheme, the Government has introduced direct tax disputes resolution scheme known as 'The Direct Tax Vivad Se Vishwas Scheme, 2024' (Scheme) in the Finance (No.2) Bill, 2024 subsequently enacted as Finance (No.2) Act, 2024. The Scheme will be effective from 1 October 2024.