Government Waives Pending Tax Demands: Relief for Taxpayers

- CA. Ali Asgar



Government Waives Pending Tax Demands: Relief for Taxpayers

    In a significant move to ease the burden on taxpayers, the Central Board of Direct Taxes (CBDT) has announced the waiver of pending tax demands up to Rs. 1 lakh per individual. This announcement, made through an order dated February 13, 2024, marks a crucial step in providing relief to taxpayers grappling with outstanding tax liabilities.

    The CBDT directive, outlined in order number 375/02/2023-IT-Budget, signifies the commencement of remittance and extinguishment of eligible old tax demands as of January 31, 2024. Taxpayers are encouraged to promptly access the Income Tax portal to ascertain the status of their 'Extinguished Demands' by following the path outlined in the Pending Action Response to Outstanding Demand section.

    Under the provisions set forth by the CBDT, the waiver applies to the principal component of tax demand under the Income-tax Act, 1961, or corresponding provisions of the Wealth-tax Act, 1957, or Gift-tax Act, 1958. Additionally, interest, penalty, fee, cess, or surcharge under various provisions of the Income-tax Act, 1961, are included within the ambit of this relief measure.

    It's important to note that the waiver is subject to a maximum ceiling of Rs. 1,00,000 (Rupees one lakh) for any specific taxpayer/assessee. This provision aims to alleviate the financial strain on individuals while fostering greater compliance and adherence to tax regulations.

    As taxpayers navigate through the complexities of tax obligations, this announcement comes as a welcome respite, offering much-needed relief amidst economic uncertainties. It underscores the government's commitment to alleviating the tax burden on individuals and fostering a conducive environment for economic growth and prosperity.

    In conclusion, the waiver of pending tax demands represents a significant step towards easing the financial burdens faced by taxpayers. By leveraging the Income Tax portal, individuals can stay informed about the status of their tax liabilities and avail themselves of the benefits offered under this relief measure. It is a testament to the government's proactive approach in addressing the needs of taxpayers and promoting financial well-being for all.


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