Income Tax: Over a crore taxpayers have received relief after receiving letters from the Income Tax Department requesting payment of up to Rs 1 lakh in taxes. According to an order from the Central Board of Direct Taxes (CBDT), the Income Tax Department has begun to provide exemptions and to remove past-due tax claim demands through January 31, 2024.
Income Tax: Over a crore taxpayers have received relief after receiving letters from the Income Tax Department requesting payment of up to Rs 1 lakh in taxes. In an order, the Central Board of Direct Taxes (CBDT) stated that the Income Tax Department has begun to grant exemptions and to eliminate the previous demand for unpaid taxes through January 31, 2024.This is being done in view of the announcement made in the interim budget. CBDT said in its order that tax demand of any taxpayer up to a maximum of Rs 1 lakh will be waived.
Income Tax Waiver of tax demand up to Rs 1 lakh
Income Tax: By providing an exemption on tax demands up to Rs 25,000 in each assessment year for assessment years 2020–11 to January 31, 2024, the CBDT announced in its order that it will be eliminated. Nevertheless, it will be eliminated by providing an annual exemption on tax demands of Rs 10,000 from assessment years 2011–12 to 2015–16. The entire sum, nevertheless, shouldn’t be more than Rs 1 lakh.
EPFO New Rule 2024: Aadhaar Card no longer valid for DOB proof, Get More Details Here!
DA Hike 2024: Good News! Employees receive a government boost as dearness allowance is raised !
7th pay commission latest news today 2024, Central Government employees DA Growth Rate?
In the interim budget, the finance minister declared
Income Tax: One lakh taxpayers had a significant reprieve when Finance Minister Nirmala Sitharaman declared during the interim budget presentation on February 1, 2024, “Direct tax demand up to Rs 25,000 for the period up to the financial year 2009-10 and Rs 25,000 for the period 2010-11.” There will be a withdrawal of the outstanding income tax demand up to Rs 10,000 from 2014–15. One crore taxpayers will gain from this decision, according to the finance minister.
To what extent is alleviation achieved?
Income Tax: The years of assessment determine the remission.From 2010 to 2011 assessment years: up to Rs 25,000 for each demand entry.From 2011–12 to 2015–16 assessment years: Up to Rs. 10,000 for each demand entry.It is noteworthy that there is an aggregate cap of Rs 1 lakh per taxpayer, exclusive of demands for tax credit at source (TCS) or tax deducted at source (TDS).
Not everyone is granted a pass
Income Tax: The programme offers broad relief, but it does not include requests made under TDS/TCS laws against tax deductors/collectors, nor does it include any pending criminal procedures against taxpayers.
Interest is no longer Difficulty
Income Tax: The ruling, in a positive step, does away with the requirement to compute interest on postponed payments for requests that have been extinguished. This alleviates the relieved taxpayers’ financial burden even further.