Vivad Se Vishwas Scheme

The Vivad Se Vishwas (VsV) Scheme is an Indian government initiative introduced to resolve pending direct tax disputes efficiently and reduce prolonged litigation. Under the scheme, taxpayers can settle their disputes by paying the disputed tax amount, with a waiver or reduction in interest and penalties. The scheme aims to provide faster resolution, reduce the burden on courts and tribunals, and encourage voluntary compliance.

Example: A company has a pending income tax dispute of ₹50 lakh along with ₹10 lakh in interest and penalties. By opting for the Vivad Se Vishwas Scheme, the company can settle the dispute by paying only ₹50 lakh, with interest and penalties waived, thereby closing the matter without further litigation.