Budget 2024. Benefit up to ₹ 25000. One in eight taxpayers to benefit

In a move to ease the burden on taxpayers, the government has announced the withdrawal of outstanding disputed direct tax demands up to ₹25,000 in the interim Budget 2024. This means millions of taxpayers will be relieved of these long-standing demands, dating back as far as 1962.

It is a fact that the budget included a proposal that would bring much relief to a group of taxpayers, namely the withdrawal of tax demands up to Rs 25,000 that have been in dispute for years. However, this proposal went unnoticed.

The Finance Minister claims that this is a continuation of the Modi government's efforts to improve taxpayer services. Nirmala Sitharaman claims that it will benefit about a crore taxpayers or one in eight people. Revenue department officials explained after the budget presentation that there are about 2.68 crore such small tax demands, of which 2.1 crore are below Rs 25,000. Of these 2.1 crore demands, 58 lakhs are from the financial year 2009-10. About 53 lakhs are from the period 2010-11 to 2014-15.

Here's what you need to know:

• This applies to disputed tax demands up to ₹25,000 for years up to 2009-10 and up to ₹10,000 for years 2010-11 to 2014-15.
• This is expected to benefit around one crore taxpayers.
  The move is seen as a step towards simplifying the tax filing process and reducing anxiety for taxpayers.
• The exact mechanism for implementing the waiver is still being developed by the Central Board of Direct Taxes (CBDT).

Some additional points to consider:

• Tax demands can arise for various reasons, including filing errors or outstanding dues.
• The budget also highlights improvements in processing tax returns, with faster refunds and reduced processing time.

Overall, this is a positive step towards simplifying the tax filing process and reducing anxiety for taxpayers.