NEW DELHI: The Vivad se Vishwas scheme will come into effect on October 1, 2024, the finance ministry said in a notification. The scheme will provide taxpayers with an opportunity to settle ongoing tax disputes.
The new initiative follows the positive feedback received from the first tranche of the scheme, which was launched in 2020. “The central government hereby appoints the 1st day of October 2024 as the date on which the Direct Tax Vivad Se Vishwas Scheme 2024 shall come into force,” the notification said.
The initial ‘Vivad se Vishwas’ scheme saw about 1 lakh taxpayers participating, resulting in the government collecting nearly Rs 75,000 crore in taxes. As per Karishma R Phatarphekar, Partner, Deloitte India, with tax payment rates set to increase by 10% starting January 1, 2025, it is crucial for companies to evaluate their pending income tax litigations from both a cost-benefit standpoint and a broader non-tax perspective.