Answer: To reduce ongoing litigations related to income tax
Notes: The Finance Ministry announced that the second edition of the Direct Tax Vivad se Viswas scheme 2024 (VSV 2.0) will soon be operational. This scheme aims to reduce ongoing income tax litigations. VSV 2.0 allows taxpayers and the Income Tax Department to resolve disputes through a streamlined appeals process. It covers appeals pending as of July 22, 2024, and waives penalties and interest for settlements, ensuring no prosecution for resolved cases. The scheme excludes certain cases, such as those involving searches or serious offenses. Its goal is to provide a cost-effective way to settle disputes, easing the litigation burden on taxpayers and the judicial system.
