The scheme allows taxpayers to settle pending direct tax disputes by paying the disputed tax amount along with a specified percentage. Once paid, the Income Tax Department waives penalties and interest and closes the case.
The Ministry of Finance issued a notification on April 8, 2025, confirming the deadline. “In exercise of the powers conferred by clause (l) of sub-section (1) of section 89 of the Finance (No. 2) Act, 2024… the 30th day of April, 2025 as the last date,” it said.
VSV 2.0 came into effect on October 1, 2024. It covers disputes that were pending before appellate authorities—including CIT(A), ITAT, High Courts, and the Supreme Court—as of July 22, 2024.
The scheme aims to reduce litigation and ease the burden on courts and tribunals. It is a follow-up to the earlier Vivad Se Vishwas scheme launched in 2020, which was successful in resolving thousands of tax cases.
Who is eligible?
Taxpayers can apply if:
- They or the tax department have filed an appeal, writ petition, or SLP before an appellate forum, and it is pending as of July 22, 2024.
- They have filed objections before the Dispute Resolution Panel (DRP) under Section 144C of the Income Tax Act.
- Declarations must be filed under Section 90 of the Finance (No. 2) Act, 2024.
- The government expects the scheme to generate significant revenue and help close old tax cases swiftly.
First Published: Apr 30, 2025 9:43 AM IST
