Relief for for small taxpayers: Pending tax demands up to ₹1 lakh to be waived off
Upstox
1 min read • Updated: February 20, 2024, 2:55 PM
Summary
As per the notification from the income tax department, the limit of ₹1 lakh per taxpayer includes principal tax amount, interest, penalty, fee, cess, or surcharge under the three tax acts. Also, the waiver will be applicable to any outstanding demands related to income tax, wealth tax, or gift tax as of January 31, 2024.
Indian taxpayers are about to get some respite as the income tax department has issued a notification prescribing a ceiling of ₹1 lakh per taxpayer for withdrawal of small tax demands till the assessment year 2015-16.
This announcement comes after Finance Minister Nirmala Sitharaman, in her Interim Budget speech, announced waiving off small outstanding tax demands of up to ₹25,000 or less for the period up to FY10, and ₹10,000 or less for the financial years from FY11 to FY15.
As per the notification, the limit of ₹1 lakh per taxpayer includes principal tax amount, interest, penalty, fee, cess, or surcharge under the three tax acts. Also, the waiver will be applicable to any outstanding demands related to income tax, wealth tax, or gift tax as of January 31, 2024.
A Finance Ministry report stated that there are about 1.11 crore such disputed tax demands, totalling to about ₹3,500 crore, which will be withdrawn following the announcement.
However, this relief will not be applicable for demands made against tax deductors or collectors under the TDS or TCS provision of the Income Tax Act.