Budget 2024 income tax: Some relief for taxpayers; outstanding personal tax demands up to Rs 25,000 withdrawn | Business – Times of India

by The Technical Blogs

Budget 2024 income tax: During Budget 2024 speech, the Finance Minister Nirmala Sitharaman announced the removal of disputed direct tax demands up to Rs 25,000, aiming to provide relief to income taxpayers. As mentioned in the speech, this is expected to benefit approximately 1 crore taxpayers.
The proposal involves withdrawing outstanding direct tax demands, specifically those up to Rs 25,000 for the period up to FY 2009-10 and up to Rs 10,000 for financial years 2010-11 to 2014-15.This is aimed at benefiting approximately one crore taxpayers by addressing issues related to small, unresolved, or disputed tax demands that have lingered on for years.
ALSO READ | Budget 2024 Income Tax Slabs FY25 Live Updates: No changes in tax rates; know income tax slabs & tax rates for 2024-25
“In line with our Government’s vision to improve ease of living and ease of doing business, I wish to make an announcement to improve taxpayer services. There are 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. I propose to withdraw such outstanding direct tax demands up to twenty-five thousand rupees (Rs 25,000) pertaining to the period up to financial year 2009-10 and up to ten-thousand rupees (Rs 10,000) for financial years 2010-11 to 2014-15. This is expected to benefit about a crore tax-payers,” Sitharaman said.
Sandeep Jhunjhunwala, Partner at Nangia Andersen LLP was quoted by ET saying that this move should reduce the burden on taxpayers and contribute to a more conducive environment for compliance and economic growth.
After filing income tax returns this year, many taxpayers received outstanding tax demands under Section 245 of the Income-tax Act, 1961. This section allows the income tax department to offset past years’ outstanding dues against the current year’s tax refund. The challenge arises when the department issues a Section 245 notice for a very old income tax return (ITR), as few individuals can recall such outdated information. To address this concern and expedite the resolution of pending Section 245 income tax notice cases, the Income-tax department has introduced the Demand Facilitation Centre (DFC) in select states, offering free assistance to eligible individuals, the ET report states.

Source link

Related Posts

Leave a Comment


Copyright @2020  All Right Reserved – Designed and Developed by DSF SEO COMPANY