Lok Sabha Question No. 182 (UNSTARRED), answered on 2024-07-22
Subject: VIVAD SE VISHWAS SCHEME
Ministry: FINANCE
Asked by: Shri P V Midhun Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA UNSTARRED QUESTION NO. 182

TO BE ANSWERED ON MONDAY, THE 22 nd  JULY, 2024/31 ASHADHA, 1946 (SAKA)

## VIVAD SE VISHWAS SCHEME

## 182. Shri P V Midhun Reddy:

Will the Minister of FINANCE be pleased to state: -

- (a) the details and the features of the direct tax dispute resolution Vivad se Vishwas Scheme launched in 2020;
- (b) the benefits realised out of the same in terms of reducing pending income tax litigation and generating timely revenues for the Government; and
- (c) the details of other such  measures being taken by the Government to end tax litigation and legacy disputes?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

## Answer (a)

## DIRECT TAX VIVAD SE VISHWAS SCHEME, 2020

- (i) The scheme was announced by the Hon'ble FM in Budget Speech of 2020. For the purpose of the scheme, the Direct Tax Vivad Se Vishwas Act, 2020 (the Act) received the assent of the Hon'ble President on the 17th March, 2020 and it was notified. The Act was introduced to provide for resolution of disputed tax and for matters connected therewith or incidental thereto.
- (ii) The  objective  of  the  Act  was  to  reduce  pending  income  tax  litigation,  generate  timely  revenue  for  the Government and benefit taxpayers by providing them peace of mind, certainty and savings on account of time and resources that would otherwise be spent on the litigation process.
- (iii) The scheme covers disputes related to tax arrear. The 'tax arrear' under the scheme means the aggregate amount of disputed tax, interest chargeable or charged on such disputed tax, and penalty leviable or levied on such disputed tax; or disputed interest; or disputed penalty; or disputed fee.
- (iv) The tax payer eligible under the Act, will have a conclusive determination of tax payable which is lower than the disputed tax arrears and there is no re-opening of the matter. Further, the Act provides immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases.
- (v) The scheme can be availed by the eligible tax payers who are in dispute and the matter is pending before the Supreme Court or the High Court or the ITAT or CIT(Appeals) etc.
- (vi) To be eligible under the scheme, the taxpayer shall withdraw the pending appeals. Further, no appellate forum shall proceed to decide any issue.

- (vii) The  scheme  is  not  applicable  in  respect  of  tax  arrears  in  certain  class  of  cases,  including  search, prosecution, etc. under the Income-tax Act or where prosecution has been initiated/instituted under certain other laws.

## Answer (b)

## Answer (c)

- (i) As a step towards reducing litigation and tax disputes of the Income-tax Department, CBDT has issued Circular directing field Officers not to file appeal before appellate authorities having tax effect below the monetary limits as under, except in certain specified class of cases:
- (ii) Finance Act, 2022 has inserted a new section 158AB in Income Tax Act to avoid repetitive appeals by the Department. The section provides that, if a question of law in the case of an assessee is identical to a question of law which is pending in appeal before the jurisdictional High Court or the Supreme Court in any case, the filing of further appeal in the case of this assessee by the department, before the ITAT or the  High  Court  as  the  case  may  be,  shall  be  deferred  till  such  question  of  law  is  decided  by  the jurisdictional High Court or the Supreme Court.
- (iii) In order to reduce litigation, appeal before High Court is filed only after the approval of a committee of Chief  Commissioners  of  Income  Tax.  Proposal  of  SLP  to  Supreme  Court  is  further  examined  by Directorate of Legal & Research to ensure that only deserving cases are brought before the Apex Court.

| Forum         | Tax Effect more than Rs.   |
|---------------|----------------------------|
| ITAT          | 50 Lakhs                   |
| High Court    | 1 Crore                    |
| Supreme Court | 2 Crore                    |

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| Summary of Vivad Se Vishwas Scheme as on 04/07/2024                                              | Summary of Vivad Se Vishwas Scheme as on 04/07/2024                                   | Summary of Vivad Se Vishwas Scheme as on 04/07/2024   |
|--------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|-------------------------------------------------------|
| (1)                                                                                              | (2)                                                                                   | (3)                                                   |
| Count of Form -1 Filed (Pending income tax litigations where settlement sought by the declarant) | Count of Form -5 issued (Number settled finally out of numbers mentioned in column 1) | Payments made against Disputed Tax (Rs. Crore)        |
| 1,31,714                                                                                         | 1,13,894                                                                              | 75,788.25                                             |