Interim Budget | Governemnt Withdraws Old, Small Disputed Tax Demands Upto Rs 25K
1 Feb 2024 3:21 PM GMT
Providing some relief to taxpayers involved in tax disputes, the interim budget for the financial year 2024-2025
Mumbai: Providing some relief to taxpayers involved in tax disputes, the interim budget for the financial year 2024-2025 on Thursday proposed to withdraw a large swathe of outstanding petty direct tax demands. The finance minister Nirmala Sitharaman announced withdrawing outstanding tax demands up to Rs 25,000 in disputed cases pertaining to the financial year 2009-10 and up to Rs 10,000 from 2010-11 to
2014-15. The finance minister said that the move is expected to benefit about a crore of tax payers and will help reduce the backlog of disputed tax cases significantly.
The Budget did not make any changes to taxation and retained the same direct and indirect tax rates, including import duties.
The Union Finance Minister further stated that the average time for refunds has been reduced from 93 days in 2013-2014 to just 10 days in the last year. She added that the average real income of people has increased by 50 per cent.
Referring to her decision on withdrawing disputed tax liability, the minister said that there were a “large number of petty, non-verified, non-reconciled or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing anxiety to honest tax payers and hindering refunds of subsequent years.”
Disputed tax is the income tax (including surcharge and cess) payable by the taxpayer in a financial or assessment year, as demanded by the tax department under the Income-tax Act, 1961.
The Budget did not make any changes to taxation and retained the same direct and indirect tax rates, including import duties.
The Union Finance Minister further stated that the average time for refunds has been reduced from 93 days in 2013-2014 to just 10 days in the last year. She added that the average real income of people has increased by 50 per cent.
Referring to her decision on withdrawing disputed tax liability, the minister said that there were a “large number of petty, non-verified, non-reconciled or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing anxiety to honest tax payers and hindering refunds of subsequent years.”
Disputed tax is the income tax (including surcharge and cess) payable by the taxpayer in a financial or assessment year, as demanded by the tax department under the Income-tax Act, 1961.
( Source : Deccan Chronicle )
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