Central Board Direct Taxes (CBDT) has issued an order No. F. No. 375/02/2023 to waive the tax demands under specified Acts which are outstanding as on 31st January, 2024.
Key points of the Order are:
- Limits for waiver of tax demands:
| Assessment Year/s (A.Y) to which the entries of outstanding tax demands as on 31st January, 2024 pertains | Amount to be remitted and extinguished |
| Upto A.Y 2010-11 | Each demand entry upto INR 25,000/- |
| A.Y 2011-12 to 2015-16 | Each demand entry upto INR 10,000/- |
2. The remission and extinguishment of the outstanding tax demand shall be subject to maximum ceiling of INR 1,00,000/- for specific taxpayers/assessee for the following demand entries as mentioned below:
i. Principal component of tax demand under the Income-tax Act, 1961 or corresponding provisions of Wealth-tax Act, 1957 or Gift-tax Act,1958.
ii. Interest, penalty, fee, cess or surcharge under various provisions of the Income-tax Act, 1961 or corresponding provisions, if any, of Wealth-tax Act, 1957 or Gift-tax Act, 1958.
3. Demands raised against the tax deductors or tax collectors under TDS or TCS provisions of the Income-tax Act. 1961 shall not be taken into consideration for remission and extinguishment of entries of outstanding direct tax demands.
4. There shall not be requirement of calculation of interest on account of delay in payment of demand or corresponding provisions of Wealth-tax Act, 1957 and Gift-tax Act, 1958 and therefore, the same shall not be considered for the purpose of determining the ceiling of ₹1,00,000/-.
5. The aforementioned remission and extinguishment of entries of outstanding demand shall not:-
i. confer any right to claim credit of any of the remitted and extinguished demand by the taxpayer/assessee under Income-tax Act, 1961 or Wealth-tax Act, 1957 or Gift-tax Act, 1958 or any other law, where such benefit of remission and extinguishment has been allowed to such taxpayer/assessee, or
ii. confer any right to claim refund of any sum by any taxpayer/assessee under Income-tax Act, 1961 or Wealth-tax Act, 1957 or Gift-tax Act, 1958 or any other law, or
iii. have any effect on any criminal proceeding/s pending/ initiated or contemplated against the taxpayer/assessee under any Act or law and shall not be construed as conferring any benefit, concession or immunity to the taxpayer/assessee in any such proceedings under any Act or law other than as specifically provided in this order, where such benefit of remission and extinguishment has been allowed to such taxpayer/assessee.
For further details, a copy of order is attached herewith for your reference.
Source: Central Board of Direct Taxes (CBDT)
