What Budget 2024 means for you: Positive takeaways from the interim Budget
What Budget 2024 means for you: Positive takeaways from the interim Budget
No hike in basic exemption, no increase in deductions, not even a change in tax slabs– why should taxpayers feel happy about the interim Budget announced last week? Let us enumerate the reasons. For one, the government has extended an olive branch to taxpayers stuck with petty tax demands of previous years. The Budget has proposed to withdraw all direct tax demands up to Rs.25,000 till the year 2009-10 and up to Rs.10,000 for the years 2010-11 to 2014-15.
The move is expected to benefit an estimated 1 crore taxpayers, who are still disputing these tax demands. It will not only free them from the tussle with the taxman, but also pave the way for tax refunds that were held up due to pending tax demands. Rajarshi Dasgupta, Executive Director and National Head of Tax, AQUILAW, observed, “In case of a pending tax demand, any refund in the subsequent year is not processed unless such demand is addressed. By disposing of the demands, many refund claims will be expedited.”
The proposal comes at a time when taxpayers are getting notices from the Income-tax Department for tax demands of previous years, some of them dating back more than 15 years. “The digitalisation of old tax records has resulted in numerous individuals facing minor demands related to past years. In most situations, even the tax department does not have the supporting documents,”
Experts feel this relief was much needed and is aimed at improving taxpayer experience. Sudhir Kaushik, Founder of tax filing portal TaxSpanner, says, “It is not a small relief when you see the number of affected taxpayers. Older demands are painful because it is difficult to keep records for so long and defend. Taxpayers, especially those with pending refunds, were facing a lot of problems.”
Instead of going through the hassles of an appeal, taxpayers often choose to pay up without challenging the department if the amount in question is small. Maneet Pal Singh, Partner, I.P. Pasricha & Co, says the step acknowledges the challenges faced by taxpayers in resolving long-standing disputes. “This may enhance taxpayer confidence, reduce litigation burdens, and promote a more collaborative approach to addressing historical tax issues,” Singh reckons.
While taxpayers who are yet to pay pending tax dues will benefit, there is no relief for those whose dues have already been adjusted against the refund. Also, taxpayers with pending tax demands exceeding the specified limits will not benefit.
Source:- Economic Times
The move is expected to benefit an estimated 1 crore taxpayers, who are still disputing these tax demands. It will not only free them from the tussle with the taxman, but also pave the way for tax refunds that were held up due to pending tax demands. Rajarshi Dasgupta, Executive Director and National Head of Tax, AQUILAW, observed, “In case of a pending tax demand, any refund in the subsequent year is not processed unless such demand is addressed. By disposing of the demands, many refund claims will be expedited.”
The proposal comes at a time when taxpayers are getting notices from the Income-tax Department for tax demands of previous years, some of them dating back more than 15 years. “The digitalisation of old tax records has resulted in numerous individuals facing minor demands related to past years. In most situations, even the tax department does not have the supporting documents,”
Experts feel this relief was much needed and is aimed at improving taxpayer experience. Sudhir Kaushik, Founder of tax filing portal TaxSpanner, says, “It is not a small relief when you see the number of affected taxpayers. Older demands are painful because it is difficult to keep records for so long and defend. Taxpayers, especially those with pending refunds, were facing a lot of problems.”
Instead of going through the hassles of an appeal, taxpayers often choose to pay up without challenging the department if the amount in question is small. Maneet Pal Singh, Partner, I.P. Pasricha & Co, says the step acknowledges the challenges faced by taxpayers in resolving long-standing disputes. “This may enhance taxpayer confidence, reduce litigation burdens, and promote a more collaborative approach to addressing historical tax issues,” Singh reckons.
While taxpayers who are yet to pay pending tax dues will benefit, there is no relief for those whose dues have already been adjusted against the refund. Also, taxpayers with pending tax demands exceeding the specified limits will not benefit.
Source:- Economic Times