Budget 2024: Disputed Direct Tax Demand Of Up To Rs 25,000 Till FY10, Rs 10,000 For FY11-15 Withdrawn

Interim Budget: Finance minister said the aim of the government has been to improve services for taxpayers

Nirmala Sitharaman said the withdrawal of tax demand will benefit one crore taxpayers in India.

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Union Finance Minister Nirmala Sitharaman on Thursday said that the government has proposed to waive old disputed direct tax demands of up to Rs 25,000 till FY10 and Rs 10,000 for 2010-11 to 2014-15. During her interim Budget presentation in the Loks Sabha today, Sitharaman said the withdrawal of tax demand will benefit one crore taxpayers across the country.

"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 Rs 25,000 pertaining to the period up to financial year 2009-10 and up to Rs 10,000 for financial years 2010-11 to 2014-15. This is expected to benefit about a crore tax-payers," the FM said in her Budget speech.

According to the minister, the aim of the government has been to improve services for taxpayers. This move by the government comes as a relief to the taxpayers as these disputed tax demands continue to remain on the books and cause anxiety to them.

Pramod Kathuria, founder and CEO of Easiloan, said the measures announced by the government to alleviate tax burdens and streamline administration will benefit approximately 1 crore taxpayers. "The proposal includes waiving outstanding direct tax demands up to Rs 25,000 for fiscal years up to 2009-10 and up to Rs 10,000 for 2010-11 to 2014-15, benefitting approximately 1 crore taxpayers. This move aims to simplify tax administration. Additionally, the Budget highlights achievements in processing tax returns, with the average time reduced from 93 days in 2013-14 to just 10 days, ensuring faster refunds and an enhanced taxpayer experience," Kathuria said.