MasteryExams
Economics • Indian EconomyMedium

The 'Vivad se Vishwas' scheme, introduced by the Government of India, was primarily designed to address which of the following issues?

A. To resolve long-standing direct tax disputes and reduce litigation pending before various appellate forums.✓ Correct Answer
B. To restructure non-performing assets of micro, small, and medium enterprises stuck in debt tribunals.
C. To settle outstanding commercial contract disputes involving public sector undertakings and private contractors.
D. To liquidate accumulated state-level power utility dues owed to central generating stations.

💡 Solution & Explanation

The Vivad se Vishwas scheme was introduced in the Union Budget to resolve pending direct tax litigation and reduce the massive backlog of cases clogging appellate forums. It allowed taxpayers to settle disputes by paying a stipulated percentage of the disputed tax amount while receiving a complete waiver of interest and penalties. Other options concerning non-performing assets or power utility dues pertain to entirely different legal frameworks such as the Insolvency and Bankruptcy Code.

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