CBDT announces waiver of pending tax demands upto INR 1,00,000 per taxpayer

Summary– In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced the extinguishment of tax demands until AY 2015-16, with the CBDT issuing an order specifying monetary limits and conditions for waiver. The waiver applies to demands up to Rs. 25,000 per entry for AY up to 2010-11 and Rs. 10,000 for AY 2011-12 to 2015-16, capped at Rs. 1,00,000 per assessee, excluding TDS/TCS demands and not affecting ongoing criminal proceedings. This provides targeted relief to taxpayers while maintaining compliance with legal frameworks.

Name– CBDT announces waiver of pending tax demands upto INR 1,00,000 per taxpayer

Date-13^th February 2024

Circular number.– Order, F.no. 375/02/2023, dated 13-02-2024

Link–https://www.incometax.gov.in/iec/foportal/sites/default/files/2024-02/Attachment.pdf

Brief of Provisions- In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced the extinguishment of tax demands until Assessment Year (AY) 2015-16. Subsequently, the Central Board of Direct Taxes (CBDT) issued an order addressing the remission and extinguishment of tax demands under the Income Tax Act, 1961, Wealth Tax Act, 1957, and Gift Tax Act, 1958. This order prescribes specific monetary limits for the waiver of demands. For assessment years up to 2010-11, demands up to Rs. 25,000 per entry are eligible for waiver, while for AY 2011-12 to 2015-16, the waiver applies to demands up to Rs. 10,000 per entry. However, the remission is capped at Rs. 1,00,000 per assessee across all eligible assessment years. Notably, the waiver does not apply to demands related to Tax Deducted at Source (TDS) or Tax Collected at Source (TCS). The outstanding demand considered for waiver includes the tax principal, interest, penalties, fees, cess, or surcharge, excluding interest under Section 220(2) for delayed payments. Additionally, the remission of outstanding demands does not entitle the assessee to claim any credit or refunds under the Income Tax Act or other legislation. Importantly, this waiver does not affect any ongoing or completed criminal proceedings against the assessee, offering no concessions in such matters. This order provides targeted relief to taxpayers while ensuring adherence to legal and regulatory frameworks.

For a detailed brief of the circular click on the link – https://www.incometax.gov.in/iec/foportal/sites/default/files/2024-02/Attachment.pdf