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.