- The budget 2023-24 has proposed a scheme for settling contractual disputes named Vivad se Vishwas II (Settling Contractual Disputes).
- To settle contractual disputes of government and government undertakings, a wherein arbitral award is under challenge in a court, a voluntary settlement scheme with standardized terms will be introduced.
- This will be done by offering graded settlement terms depending on the pendency level of the dispute,” Finance Minister Nirmala Sitharaman said in her budget speech.
- Under the scheme, the voluntary option is given to the private sector to come into the scheme or not.
Vivad Se Vishwas Scheme:-
- It is a direct tax scheme introduced by the Government of India in 2020 for settling disputes between taxpayers and the income tax department.
- It aims to minimize tax-related litigation.
- Under this scheme, an individual taxpayer can claim a full waiver of interest and penalty on the full and final settlement of the disputed tax amount.
- There was a time limit set for the payment of taxes under the scheme.