Official Source
Ministry of Finance / CBDT
The Government of India has extended the Vivad Se Vishwas 2.0 Scheme which allows taxpayers to settle pending income tax disputes by paying a percentage of disputed tax, waiving interest and penalties. This scheme covers disputes pending before various appellate forums.
Who Can Apply
Taxpayers with disputes pending as on the cutoff date before:
- ▸Commissioner of Income Tax (Appeals) — CIT(A)
- ▸National Faceless Appeal Centre (NFAC)
- ▸Income Tax Appellate Tribunal (ITAT)
- ▸High Court
- ▸Supreme Court
- ▸Also covers disputes related to TDS/TCS, undisclosed income, and search cases
Payment Structure
For disputes related to assessment:
For disputes related to interest, penalty, fees only:
- ▸If payment made before December 31, 2026: 100% of disputed tax only (no interest/penalty)
- ▸If payment made after December 31 but before March 31, 2027: 110% of disputed tax
- ▸Payment of 25% of disputed amount before December 31, 2026
- ▸30% after December 31 till March 31, 2027
Key Benefits
- ▸Complete waiver of interest on disputed tax
- ▸Complete waiver of penalty (if any)
- ▸No further prosecution in criminal cases related to the dispute
- ▸Certificate of settlement serves as final resolution — dispute cannot be reopened
- ▸No requirement to prove that appeal was filed for valid reasons
How to Apply
- ▸File Form-1 (Declaration) on Income Tax e-filing portal
- ▸Receive intimation in Form-2 from Designated Authority
- ▸Pay the determined amount
- ▸File Form-3 (undertaking to withdraw appeal)
- ▸Receive Certificate (Form-4) confirming settlement
Evaluation Checklist
Before opting for VsV 2.0:
Contact Biswa Corporate Solutions at info@biswa.co.in for expert guidance on Vivad Se Vishwas eligibility assessment.
- ▸Calculate total disputed tax vs. cost of litigation
- ▸Assess the probability of winning the appeal
- ▸Consider the time value of money locked in dispute
- ▸Review whether the scheme covers your specific dispute type
- ▸Consult your CA/tax advisor for case-specific analysis
Need help with compliance? Biswa Corporate Solutions offers expert guidance on GST, Income Tax, PF, ESIC, FSSAI, and more. Contact our experts →
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