Good news for Indian taxpayers! The Central Board of Direct Taxes (CBDT) has introduced a taxpayer-friendly measure to relieve individuals of eligible outstanding direct tax demands up to Rs 1 lakh. This move, announced in the 2024 Interim Budget, aims to simplify the tax system and provide relief to millions of taxpayers.
Under this initiative, taxpayers can benefit from relief based on the assessment years. For assessment years 2010-11 onwards, relief is provided up to Rs 25,000 per demand entry, while for assessment years 2011-12 to 2015-16, relief is up to Rs 10,000 per demand entry. However, there is a maximum relief limit of Rs 1 lakh per taxpayer, excluding demands related to tax deducted at source (TDS) or tax credited at source (TCS).
It’s important to note that this relief does not apply to demands against tax deductors/collectors under TDS/TCS provisions or ongoing criminal proceedings against taxpayers.
In addition to the relief from outstanding tax demands, the recent order also removes the need to calculate interest on delayed payments for these resolved demands. This additional measure brings further financial relief to taxpayers, aiming to alleviate their financial burdens and make the tax system more streamlined.
