Income Tax News: In a landmark move aimed at providing substantial relief to taxpayers, the government has announced the withdrawal of long-standing direct tax demands in Budget 2024. Under this initiative, taxpayers burdened by historical disputes can now breathe a sigh of relief as the government offers up to ₹25,000 in tax relief. This significant decision, expected to benefit approximately 1 crore taxpayers, marks a pivotal moment in tax reform and administration.
Resolving Long-Pending Tax Disputes
Finance Minister Nirmala Sitharaman, in her Budget 2024 speech, addressed the issue of long-pending tax disputes that have been a cause of concern for taxpayers for decades. Recognizing the burden imposed by these disputes, some dating as far back as 1962, the government has taken a proactive stance to alleviate the financial strain on taxpayers.
Tax Relief Measures
Under the proposed measures, all outstanding direct tax demands up to ₹25,000 from the years 1962 to 2009-10 will be withdrawn, offering much-needed relief to taxpayers grappling with financial uncertainties. Additionally, for the period from 2010 to 2015, direct tax demands up to ₹10,000 will be waived, further easing the tax burden on affected individuals and entities.
Simplified Tax Procedures
Apart from the withdrawal of outstanding tax demands, Budget 2024 also focuses on simplifying tax procedures and enhancing taxpayer services. The introduction of Faceless Assessment and Appeal aims to bring greater efficiency, transparency, and accountability to tax administration. Moreover, the introduction of a new Form 26AS for filing income tax returns simplifies the process, reducing the average processing time for returns from 93 days to just 10 days since 2013-14.
Interim Budget Overview
Presented as an interim budget for the fiscal year 2024-25, Budget 2024 serves as a ‘stop gap’ measure for the transition period between April and June/July. With the upcoming Lok Sabha elections in April-May, the new government will present a comprehensive budget outlining the roadmap for India’s development.
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