Tax Demand Waiver: Finance Minister Nirmala Sitharaman said, relief to 1 crore taxpayers due to the decision to withdraw the outstanding tax demand.

Income Tax Demand Waiver:Finance Minister Nirmala Sitharaman has said that one crore taxpayers are going to get big benefits in the coming days who were troubled by the income tax demand notices. The Finance Minister said that there are many taxpayers to whom notices were issued regarding tax claims since 1962. But the government's decision to waive off tax claims is going to provide great relief to such taxpayers. CBDT has recently issued a circular regarding this. 

Big relief to 1 crore taxpayers 

While addressing the inauguration ceremony of Direct Tax Bhawan in Gorakhpur, Uttar Pradesh, the Finance Minister said that a small decision has been taken in the budget in favor of taxpayers but this decision will benefit more than 1 crore taxpayers. The Finance Minister said that since 1962, taxpayers have been receiving demand notices for tax claims. But the government has given great relief regarding this. The Finance Minister said that it is being abolished by giving exemption on tax demand of up to Rs 25,000 in every assessment year till assessment year 2020-11. It has been decided to abolish tax demand by giving exemption of Rs 10,000 per year from assessment year 2011-12 to assessment year 2015-16. 

Gross Direct Tax collections have increased by 16.77% on yearly basis.

Refunds worth Rs 2.48 lakh crore were issued between April 2023 to January 2024. It led us to increase the Capital Expenditure by 433% to Rs. 11.11 lakh crore in 2024-25.

In this year's Interim Budget we've… pic.twitter.com/30Y2ssyPYO

— Nirmala Sitharaman Office (@nsitharamanoffc) February 22, 2024

2.48 lakh crore refund issued 

The Finance Minister said that there is no need to pay this outstanding tax demand of the taxpayers. He said that this step has been taken for the benefit of taxpayers. The Finance Minister said that the Income Tax Department is issuing refunds to the people on time. Till January 10, 2024, refund of Rs 2.48 lakh crore has been issued to the taxpayers and till now there has been a jump of 16.77 percent in direct tax collection. Due to which the capital expenditure could be increased to Rs 11.11 lakh crore. 

Old tax claim demand up to Rs 1 lakh will be abolished  

Actually, the Central Board of Direct Taxes has said in its order issued on 13 February 2024 that the Income Tax Department has started giving exemption and eliminating the old outstanding tax claim demand till 31 January 2024. CBDT said in its order that tax demand up to Rs 1 lakh on any taxpayers will be waived. It will be abolished by giving exemption on tax demand up to Rs 25,000 in every assessment year for assessment year 2020-11 till January 31, 2024. Whereas from assessment year 2011-12 to assessment year 2015-16, it will be abolished by giving exemption on tax demand of Rs 10,000 every year. But all these amounts together should not exceed Rs 1 lakh. Central Processing Centre, Bengaluru will have to implement this order within two months.

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