Budget 2024: Sitharaman tax demand withdrawal to benefit 10 million taxpayers
The move is in line with the government’s commitment to provide ease of living to citizens by reducing compliance burdens
Finance minister Nirmala Sitharaman on Thursday announced the withdrawal of outstanding direct tax demands up to ₹25,000 pertaining to the period up to financial year 2009-10 and up to ₹10,000 for 2010-11 to 2014-15. The move is expected to benefit about 10 million taxpayers.
“I propose to withdraw such outstanding direct tax demands up to twenty-five thousand rupees ( ₹25,000) pertaining to the period up to the financial year 2009-10 and up to ten thousand rupees ( ₹10,000) for financial years 2010-11 to 2014-15. This is expected to benefit about a crore tax-payers,” Sitharaman announced in her Interim Budget speech in Parliament.
The move is in line with the government’s commitment to provide ease of living to citizens by reducing compliance burdens. Experts said the decision will help middle-class salaried people.
“Moreover, 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,” Sitharaman said.
The other purpose is to reduce the large number of old litigations that consume the time and energy of the tax department. Instead of spending time on “insignificant, futile, and small litigations”, the tax department can use its energy on raising revenues through better tax administration, a government official said, requesting anonymity. “It severs two purposes – mental relief to small taxpayers and save energy of department for constructive works,” he said.
Sitharaman said there were 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 taxpayers and hindering refunds of subsequent years.
