Income Tax: There is news of relief for more than one crore taxpayers on whom the Income Tax Department has sent notices demanding tax up to Rs 1 lakh. The Central Board of Direct Taxes (CBDT) has said in its order that the Income Tax Department has started giving exemption and eliminating the old outstanding tax claim demand till January 31, 2024.
Income Tax: There is news of relief for more than one crore taxpayers on whom the Income Tax Department has sent notices demanding tax up to Rs 1 lakh. The Central Board of Direct Taxes (CBDT) has said in its order that the Income Tax Department has started giving exemption and abolishing the old outstanding tax claim demand till January 31, 2024. This is being done in view of the announcement made in the interim budget. CBDT said in its order that tax demand of any taxpayer up to a maximum of Rs 1 lakh will be waived.
Tax demand waived up to Rs 1 lakh
CBDT said in its order that it will be abolished by giving exemption on tax demand of 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. However, the total amount should not exceed Rs 1 lakh.
Finance Minister announced in the interim budget
While presenting the interim budget on February 1, 2024, Finance Minister Nirmala Sitharaman had given a big relief to one crore taxpayers and announced that, ‘Direct tax demand up to Rs 25,000 for the period up to the financial year 2009-10 and Rs 25,000 for the period 2010-11. The outstanding income tax demand up to Rs 10,000 from 2014-15 will be withdrawn. The Finance Minister had said that this decision will benefit one crore taxpayers.
