Extinguished Demand News Today

The order stated that the outstanding demands for remission should pertain to income, wealth, and gift tax. The upper ceiling of Rs 1 lakh for remission includes tax demand, interest, penalty if any, and cess and surcharge.

The CBDT order lays down the details of the scheme announced in the last budget — which said tax demands for AY 2010-11 of up to Rs 25,000 and for AY 2011-12 to 2015-16 of up to Rs 10,000 will be withdrawn

The Central Board of Direct Taxes (CBDT) has set a ceiling of ₹1 lakh per assessee for the withdrawal of small tax demands until the 2015-16 assessment year.

Income tax outstanding demand: The Central Board of Direct Taxes (CBDT) has stated via a order that the income tax department has started waiving eligible old tax demand. However a maximum ceiling limit per taxpayer/assessee has been set and no outstanding tax demand entries above this ceiling limit would be extinguished.

The CBDT order said that such outstanding tax demands pertaining to income tax, wealth tax and gift tax as on January 31, 2024, shall be remitted and extinguished "subject to the maximum ceiling of Rs 1 lakh for any specific taxpayer/assessee"., Personal Finance News, Times Now

The limit of Rs 1 lakh would include principal component of tax demand, interest, penalty or fee, cess, surcharge. However, the remission shall not be applicable on the demands raised against the tax deductors or tax collectors under TDS or TCS provisions of the I-T Act.

The Central Board of Direct Taxes (CBDT), in an order last week, has asked the directorate of income tax (DIT) (systems) and central processing centre (CPC) to implement, preferably within two months, remission and extinguishment of small demands outstanding as of 31 January 2024.

The Budget 2024-25 announced that tax demands for AY 2010-11 of up to Rs 25,000 and for AY 2011-12 to 2015-16 of up to Rs 10,000 will be withdrawn