Finance Minister Nirmala Sitharaman had announced relief to taxpayers in the Union Budget on February 1, 2024. He had said that income tax demand up to a certain amount limit from assessment year 2010-11 and assessment year 2011-12 to 2015-16 will be waived.
The Central Board of Direct Taxes ( CBDT ) has taken a big step to waive tax demand up to a certain amount. He has issued an order in this regard on 13 February. CBDT has issued the order after the announcement by Finance Minister Nirmala Sitharaman in the budget this year. The Finance Minister had announced to waive tax demand for a certain amount and period on February 1, 2024. He had said that this step of the government will provide relief to a large number of taxpayers. In the order issued by CBDT on 13 February, the conditions for waiving the tax demand have been explained.
Tax demand up to Rs 1 lakh will be waived off for every taxpayer.
Taxpayers have been given relief in case of tax demands issued under the Income Tax Act, 1961, Wealth Tax Act, 1957 and Gift Tax Act, 1958. The limit (amount) of tax demand is different for different assessment years till 2015-16. However, a limit of Rs 1,00,000 has been fixed for each taxpayer’s demand waiver. This does not include demand entry of TDS and TCS.
Tax demand limit fixed according to assessment year
This waiver will be available in case of demand up to Rs 25,000 for assessment year 2010-11. This waiver will be available for every tax demand up to Rs 10,000 during assessment year 2011-12 to assessment year 2015-16. This means that a maximum exemption of Rs 25,000 will be available for tax demand related to assessment year 20210-11. Similarly, the maximum limit for waiver of each tax demand during assessment year 2011-12 to 20215-16 will be Rs 10,000.
No waiver of tax demand issued under the provisions of TDS/TCS
It is important to keep in mind that tax demands issued under the provisions of TDS and TCS will not be covered under this waiver. This waiver will include the principal portion of the tax demand as well as interest, penalty, fee, cess or surcharge. Directorate of Income Tax (System)/Centralized Processing Centre, Bengaluru (CPC) has been asked to comply with the order of CBDT. He will have to comply with the order within two months. If any mistake is found in this apology, it will have to be corrected by CPC, Bengaluru.
