Definition
Vivad se Vishwas
Vivad se Vishwas is a dispute-resolution scheme that lets taxpayers settle pending tax litigation by paying the disputed amount with waiver of interest and penalty.
Tax litigation locks up large sums and clogs tribunals for years. The Vivad se Vishwas scheme offered taxpayers a window to settle pending direct-tax disputes by paying the disputed tax, with a waiver of interest, penalty and prosecution, clearing cases quickly for both sides.
For the government it unlocks revenue and reduces the backlog; for taxpayers it provides certainty and closure. Similar settlement windows have been considered for indirect taxes, reflecting a broader policy of periodically offering amnesty-style resolution to reduce litigation.
Related terms
- Advance Ruling (Tax)An advance ruling is a binding determination obtained from a designated authority on the tax treatment of a proposed transaction, before it is undertaken.
- Faceless AssessmentFaceless assessment is a system in which income-tax scrutiny and assessment are conducted electronically without physical interface between the taxpayer and a specific officer.
- Tax Audit (44AB)Section 44AB requires businesses and professionals above specified turnover or receipt thresholds to get their accounts audited by a chartered accountant.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.