Which outstanding tax demands would be withdrawn, as announced by the FM?
Question: Recently, the Finance Minister announced withdrawal of outstanding demands for the taxpayers. Kindly enlighten us on whether all such outstanding tax demands would be withdrawn.
Answer by Dr. Suresh Surana, Founder, RSM India: The Finance Minister in her Budget speech put forth the proposal for waiver of old unreconciled trivial tax outstanding, which is in line with the government’s vision to improve ease of living and ease of doing business.
Currently, there are a large number of petty, non-verified, non-reconciled or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing undue hardship, administrative difficulties and hindering refunds of subsequent years.
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The Finance Minister proposed to withdraw the following outstanding direct tax demands:
There are no specific proposals in the Finance Bill 2024 pertaining to the aforementioned waiver in this respect and it is likely that a separate circular will be issued by the CBDT to provide the aforesaid relief.
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