Income Tax News: In a significant move, the Income Tax Department is set to automatically eliminate pending minor tax demands for over 80 lakh taxpayers across the country. CBDT Chairman Nitin Gupta announced this positive development, emphasizing that the department will issue clear orders outlining the prescribed procedure for this resolution.
CBDT’s Assurance to Taxpayers
CBDT Chairman Nitin Gupta assured that the process would not have adverse effects on taxpayers, and they would not be required to take any action. The pending tax demands will be removed from the records of the tax department without any need for direct contact with the taxpayers. The cleared demands will be made available on the e-filing portal for individual taxpayers to review. If any discrepancies are identified, the department will address and resolve them.
Clear Orders for Transparency
Gupta highlighted that a clear order detailing the entire process will be issued to ensure transparency. This initiative is expected to benefit around 80 lakh taxpayers, and the total amount involved in these tax demands is approximately Rs 3,500 crore.
Budget Announcement
The move follows Finance Minister Nirmala Sitharaman’s announcement in the interim budget to withdraw tax demands up to Rs 25,000. The withdrawal pertains to tax disputes for the financial year 2009-10 and outstanding direct tax demands up to Rs 10,000 for the financial years 2010-11 to 2014-15. This proactive step by the Income Tax Department aims to streamline the resolution of pending tax matters and provide relief to a significant number of taxpayers.
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