CBDT drops small tax demands but not TCS, TDS Claims
PrintListen to this Article
CBDT said that tax demand up to ?25,000 for assessment year up to 2010-11 and demands up to ?10,000 from the next year up to assessment year 2015-16 will be extinguished.
However, any criminal action initiated or planned under any law will not be dropped. Any tax demand raised against taxes collected or deducted at source (TCS or TDS) will not be eligible for this relief, CBDT said. TCS and TDS leave a trail of transactions that the tax authority uses to keep an eye on transactions in the economy and to prevent any under-reporting of income.
Over the years, TDS and TCS have become an important mode of direct tax collection. The maximum benefit per taxpayer will be withdrawal of demands totaling ?1 lakh, the CBDT order said.
With the remission of the outstanding tax demand under the scheme, the provisions for levying interest for delayed tax payments under Section 220 (2) of the Income Tax Act will not apply and the same will not be considered in computing the upper limit of tax relief of ?1 lakh per taxpayer.
CBDT also explained in the order that tax liability arising from a provision in the Income Tax Act that gives an inclusive definition of income including subsidy, grant or cash incentive or duty drawback will also be eligible for the relief of remission.
The tax authority clarified that the waiver or cancellation of the tax demand does not entitle taxpayers to any claims for credit or refunds.
Category : CBDT | Comments : 0 | Hits : 883
The Central Board of Direct Taxes (CBDT), has issued Circular No. 07/2024 dated 25.04.2024 further extending the due date for filing Form 10A/ Form 10AB under the Income-tax Act, 1961 (the ‘Act’) upto 30th June, 2024. CBDT had earlier extended the due date for filing Form 10A/ Form 10AB by trusts, institutions and funds multiple times to mitigate genuine hardships of the taxpayers. The last such extension was made by Circular No. 06/2023 extending the date to...
Certain instances of mismatch of information as filed by the taxpayer and as available with the Income Tax Department have come to the notice of the Department as part of its routine exercise of verification of data. In such cases, the Department has alerted the taxpayers to enable them to take corrective action. However, some posts on social media, as well as articles in the media, have highlighted enquiries initiated by the Central Board of Direct Taxes (CBDT) in cases where employees have mad...
The Central Board of Direct Taxes (CBDT) has said the Income Tax department can file appeals irrespective of monetary threshold in cases relating to TDS/TCS, undisclosed foreign income, or information received from investigating agencies like ED and GST Intelligence. As per the present rules, tax authorities are allowed to file appeals before the ITAT, High Court and Supreme Court, if the disputed tax demand exceeds Rs 50 lakh, Rs 1 crore and Rs 2 crore, respectively. These thresholds were fi...
Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in specified sub-clauses of section 10 (23C) of the Income-tax Act, 1961 (the ‘Act’) or any trust or institution registered under section 12AA/12AB of the Act is exempt, subject to fulfilment of certain conditions specified under various sections of the Act. One of the conditions required to be fulfilled by the tru...
The Central Board of Direct Taxes (CBDT) has been releasing key statistics relating to Direct Tax collections and administration in public domain from time to time. In continuation of its efforts to place more and more information in public domain, the CBDT has further released Consolidated Time-Series data as updated upto F.Y. 2022-23. The key highlights of some of these statistics are as under: Net Direct Tax Collections have increased by 160.52% from Rs. 6,38,596 crore in F.Y. 2013-1...
Comments