Vivad se vishwas: This new scheme may be a disappointment for taxpayers

With direct tax arrears accounting for 45 per cent of the govt's gross tax collections, the big challenge is to prevent fresh disputes

The Narendra Modi government’s initiative to reduce litigation in direct tax cases has ignited a flicker of hope among taxpayers with 483,000 cases pending in various courts and appellate forums. But it is only a fli­cker and the features of the scheme, Vivad Se Vishwas (From Dispute To Trust), may prove to be a big disappointment for many such taxpayers.

If the taxpayer, under the scheme, has lost the case and gone in for an appeal, the assessee can pay 100 per cent of the disputed amount (without penalty and interest) and settle it. This may well re­sult in many