Latest news with #VSV1.0

Business Standard

Final call! Clear your tax disputes under VSV 2.0: Here's how

April 30 is the deadline for taxpayers to resolve pending income-tax disputes under Vivad Se Vishwas (VSV) 2.0. The scheme, launched in October 2024, aims to reduce litigation and expedite revenue collection by offering a structured mechanism for resolving disputes. A Push Toward Efficient Dispute Resolution 'The VSV 2.0 scheme is part of the Indian government's broader push to reduce tax litigation and unlock tied-up revenue,' says Karishma Phatarphekar, partner at Deloitte India. 'It aims to minimise the backlog in courts and foster a more taxpayer-friendly environment.' According to Phatarphekar, the first version of the scheme (VSV 1.0) resolved more than 146,000 tax appeals and helped recover around Rs 1 lakh crore as revenue. The government hopes the second version will yield similar results. Who is eligible for VSV 2.0 According to Phatarphekar, taxpayers are eligible if they have pending disputes as of July 22, 2024, including: Appeals Writ petitions Cases before the Dispute Resolution Panel, provided no final assessment order has been passed Taxpayers have to fill up Form-1 on the Income-Tax Department's website to avail of the scheme. This includes the disputed tax amount and supporting documents such as assessment orders and relevant notices. Why opt in Phatarphekar explains key benefits include: Waiver of interest and penalties Immunity from future proceedings Swift resolution without prolonged litigation However, she warns of tradeoffs. 'Any payment made under VSV 2.0 is non-refundable and once settled, disputes cannot be reopened — a double-edged sword for some.' Avoid Common Pitfalls Phatarphekar explains common errors in applications for the scheme: Miscalculating disputed tax amount Submitting incomplete documentation Missing the scheme's deadline 'Review your case thoroughly,' says Phatarphekar. 'Consult a tax expert, file ahead of time, and ensure all documents are in order.'