Vivad Se Vishwas Scheme

Vivad Se Vishwas Scheme is a dispute resolution scheme introduced by the Government of India to settle pending income tax disputes by allowing taxpayers to pay a specified amount and get relief from interest, penalty, and prosecution.

The objective is to reduce litigation and provide certainty to taxpayers.

1. Purpose of the Scheme

The scheme aims to:

• Resolve pending tax disputes quickly
• Reduce burden on courts and tribunals
• Provide relief from penalties and interest
• Encourage voluntary settlement

2. Who Can Opt for the Scheme

• Taxpayers with pending appeals or disputes
• Cases pending before:
  • Commissioner of Income Tax (Appeals)
  • Income Tax Appellate Tribunal (ITAT)
  • High Courts or Supreme Court

3. Key Benefits

• Waiver of interest and penalty (subject to conditions)
• Immunity from prosecution
• Faster closure of disputes
• Reduced litigation cost

4. Payment Structure

• Taxpayer pays disputed tax amount
• In return:
  • Interest and penalties are waived or reduced
• Additional amount may apply if payment is delayed beyond specified dates

5. Process of Settlement

• File declaration under the scheme
• Tax authority determines payable amount
• Pay amount within prescribed time
• Dispute is considered settled

6. Limitations

• Applicable only to eligible pending disputes
• Cannot be used for all types of cases
• Requires careful evaluation before opting

7. Common Mistakes

• Opting without analysing case merits
• Missing deadlines under the scheme
• Incorrect calculation of payable amount
• Ignoring long-term implications

Practical Insight

At first glance, it looks simple:
👉 pay and close

But the real decision is:

• whether to settle or continue litigation

Because:

• you give up the right to contest
• but gain certainty

So it’s a strategic call, not just a compliance step.

How N D Savla & Associates Can Help

At N D Savla & Associates, we help you:

• Evaluate whether settlement is beneficial
• Calculate correct payable amount
• Handle filing and documentation
• Strategically decide between litigation and settlement