Pending Tax demand up to ₹1L per individual waved by govt.
In Budget 2024 waiver is announced by F.M for all outstanding tax demand of earlier years up to ₹100,000, pursuant to which Income tax department is started taking action to extinguish such demands.
Key Highlights:
1. Waiver Criteria:
- Until AY 2010-11, demands up to Rs. 25,000 per entry are eligible for the waiver.
- From AY 2011-12 to AY 2015-16, the waiver applies to demands entry up to Rs. 10,000.
2. Maximum Ceiling:
- Remission and extinguishment of eligible demands are capped at Rs. 1,00,000 per assessee, regardless of the total eligible amount across assessment years.
- 3. Exclusions:
- No waiver for TDS/TCS demands.
- Waiver doesn’t apply to demands against tax deductors or collectors under TDS or TCS provisions of the Income Tax Act, 1961.
- 4. Components Included:
- Tax demand includes the principal component of tax and any other interest, penalty, fees, cess, or surcharge as per Act provisions, with the ceiling limit as applicable.
- 5. Exemption from Interest on Delayed Payment:
- Interest under section 220(2) isn’t considered for calculating the demand entry amount or the ceiling limit.