CBDT sets Rs 1 lakh ceiling per assessee for withdrawal of old tax demands

. Tax demands totalling about Rs 3,500 crore will be withdrawn following the announcement.

New Delhi | February 20, 2024 05:23 AM IST

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CBDT, direct tax demands, Income Tax department, Nirmala Sitharaman, income tax, wealth tax, gift tax, withdrawal of old tax demands, Income tax Act, tax deductors, tax collectors, TDS, TCS provisions, indian express news

Finance Minister Nirmala Sitharaman in the Budget for 2024-25 had announced that tax demands for AY 2010-11 of up to Rs 25,000 and for AY 2011-12 to 2015-16 of up to Rs 10,000 will be withdrawn. (File Photo)

Pursuant to the Budget announcement about withdrawal of direct tax demands, the Income Tax department in an order has set a ceiling of Rs 1 lakh per assessee for withdrawal of small tax demands till Assessment Year 2015-16.

The tax department’s order said that such outstanding demands pertaining to income tax, wealth tax and gift tax as on January 31, 2024, shall be remitted and extinguished “subject to the maximum ceiling of Rs 1 lakh for any specific taxpayer/assessee”.

The limit of Rs 1 lakh would include principal component of tax demand, interest, penalty or fee, cess, surcharge. However, the remission shall not be applicable on the demands raised against the tax deductors or tax collectors under TDS or TCS provisions of the Income-tax Act.

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