Breaking News: CBDT announces a game-changer - tax demands up to ₹1L waived off for assessees as of Jan 31, 2024! 🎉

CBDT announces tax demands up to ₹1L waived off for assessees as of Jan 31, 2024! 🎉 #TaxRelief #FinanceUpdate

The Central Board of Direct Taxes (CBDT) issued an order, referenced F.no. 375/02/2023 and dated February 13, 2024, following Finance Minister Nirmala Sitharaman's announcement during the Union Budget 2024 speech.

This announcement pertained to the extinguishment of tax demands up until the Assessment Year 2015-16.

The CBDT's order provides for the remission and extinguishment of outstanding tax demands under the Income Tax Act, 1961, Wealth Tax Act, 1957, or Gift Tax Act, 1958, with certain conditions and limitations.

Key points from the order include: 𝗠𝗼𝗻𝗲𝘁𝗮𝗿𝘆 𝗟𝗶𝗺𝗶𝘁 𝗳𝗼𝗿 𝗪𝗮𝗶𝘃𝗲𝗿: For Assessment Years (AY) up to 2010-11, tax demands up to Rs. 25,000 per entry are eligible for waiver. For AY 2011-12 to AY 2015-16, the limit is Rs. 10,000 per demand entry.

𝗠𝗮𝘅𝗶𝗺𝘂𝗺 𝗖𝗲𝗶𝗹𝗶𝗻𝗴: The maximum amount eligible for remission and extinguishment is capped at Rs. 1,00,000 per assessee, regardless of the total eligible amount across different assessment years.

𝗘𝘅𝗰𝗹𝘂𝘀𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗧𝗗𝗦/𝗧𝗖𝗦 𝗗𝗲𝗺𝗮𝗻𝗱𝘀: The waiver does not apply to demands against tax deductors or collectors under the TDS or TCS provisions of the Income Tax Act, 1961.

𝗖𝗼𝗺𝗽𝗼𝗻𝗲𝗻𝘁𝘀 𝗼𝗳 𝗧𝗮𝘅 𝗗𝗲𝗺𝗮𝗻𝗱: The outstanding demand includes the principal component of tax, interest, penalty, fees, cess, or surcharge as per the Act provisions, subject to the applicable ceiling limit.

𝗘𝘅𝗰𝗹𝘂𝘀𝗶𝗼𝗻 𝗼𝗳 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗼𝗻 𝗗𝗲𝗹𝗮𝘆𝗲𝗱 𝗣𝗮𝘆𝗺𝗲𝗻𝘁: Interest under section 220(2) for delayed payment is not considered in the demand entry amount or the ceiling limit.

𝗡𝗼 𝗖𝗿𝗲𝗱𝗶𝘁 𝗼𝗿 𝗥𝗲𝗳𝘂𝗻𝗱 𝗥𝗶𝗴𝗵𝘁𝘀: The remission of demands does not entitle the assessee to claim any credit or refund under the Income Tax Act or any other legislation.

𝗡𝗼 𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝗖𝗿𝗶𝗺𝗶𝗻𝗮𝗹 𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The waiver does not affect ongoing or completed criminal proceedings against the assessee, nor does it provide any benefit, concession, or immunity in such proceedings.

This order aims to alleviate the tax burden on assessees by waiving off certain tax demands, with specific exclusions and conditions.