Vivad Se Vishwas Scheme is a government plan started by Finance Minister Nirmala Sitharaman on 1 February 2024 during the Union Budget. This scheme helps taxpayers solve disputes related to direct taxes. Under this scheme, you only have to pay the disputed tax amount without any interest or penalty charges.
How Vivad Se Vishwas Scheme 2025 Works
This scheme is for taxpayers who have ongoing tax disputes at any forum. Since the introduction of faceless income tax returns, it has become easier for you to file appeals. Your identity will stay confidential when you file appeals through this scheme.
In this recent update, the government also started Vivad Se Vishwas-2 scheme on 2 August 2024. This new scheme aims to solve disputes related to government contracts. Contractors must submit their claims by around 31 October 2024. Depending on court orders, contractors can get up to 85% or 65% of the disputed amount. The GEM portal has a dedicated page for this scheme.
Important Deadlines for Vivad Se Vishwas Scheme Benefits
You can use the Vivad Se Vishwas Scheme only until 31 December 2024. Originally, the scheme lasted until March 2024, but the government extended the deadline because of the lockdown. The last date to pay the disputed tax amount is 31 March 2024.
- If you pay the determined tax amount under this scheme, you will be free from any penalty or punishment. If you already paid the tax, you may get a refund.
- Tax experts say that by paying the disputed amount through this scheme, you get relief from interest, penalties, and legal actions. The scheme is available if your disputed tax demand is less than 2 crore.
- If the court has already ordered a punishment, you cannot use this scheme. After completing the terms, the Income Tax Department will issue a certificate.
Summary of Vivad Se Vishwas Scheme
| Scheme Name | Vivad Se Vishwas Scheme |
| Launched By | Finance Minister Nirmala Sitharaman |
| Launch Date | 1 February 2020 |
| Who Can Benefit | Income Tax Payers |
| Last Date to Pay | 31 March 2024 (extended to 30 June 2024 for final benefits) |
Changes Allowed in Scheme Declaration
Now you can make changes to your declaration under the scheme until the authority has not issued a certificate after full payment. The Central Board of Direct Taxes (CBDT) released FAQs to clarify some rules. For example, if your case is pending before the Income Tax Settlement Commission or appeals are filed against its orders, you cannot use this scheme.
- If bilateral settlement processes are pending or rejected by you, you may still file appeals under this scheme.
- If the Advance Ruling Authority ruled in favour of the taxpayer but the department appealed in High Court or Supreme Court, and your income is determined by AAR, you can declare those cases.
- Considering the Covid-19 situation, the government extended the payment deadline three times, now set at 31 March 2024. You must submit your declaration by 31 December 2024 to get benefits.
Purpose of Vivad Se Vishwas Scheme
This scheme aims to reduce the number of court cases related to direct taxes. It lets you settle disputes by paying only the disputed tax amount without interest or penalty. This saves you from the hassle of long legal processes and helps build trust between taxpayers and the government.
Final Deadline to Use the Scheme
Payments under this scheme should be completed by 31 March 2024. If you delay, you may have to pay extra charges. The scheme will be available only until 30 June 2024. Over 4.83 lakh pending cases in various forums like Commissioner (Appeals), ITAT, High Courts, and Supreme Courts can be resolved through this scheme.
How to Apply for Vivad Se Vishwas Scheme
To use this scheme, you must pay the disputed amount before the deadlines. Right now, there is no official online application process announced. Once an online application method is available, we will update you here. For now, you should wait for further official instructions.
Stay tuned and get your tax disputes cleared smoothly using the Vivad Se Vishwas Scheme 2025.