The Income Tax department has commenced implementing the Centre’s budget announcement of remitting small outstanding tax demands raised under the I-T Act and erstwhile Wealth and Gift Tax Acts. Individual dues up to Rs 25,000 before FY11 and Rs 10,000 between FY11-15 now stand withdrawn.
The blanket ceiling per taxpayer has been set at Rs 1 lakh, covering principal tax and other components like interest, penalties etc from all years, benefiting around 1 crore entities as per initial government estimates.
Portal Reflects Updated Status
Taxpayers can login to the e-filing portal to view the updated status on cancellation of minor legacy dues outstanding as on January 31, 2023 that pertain to specified periods. Amounts beyond thresholds prescribed for respective years will not qualify currently.
However, technical experts have sought clarifications on certain aspects like treatment of already-levied interest on cancelled principals. Also, TDS/TCS defaults do not qualify for the amnesty scheme which aims reducing litigation burden and easing compliances.
Significantly, the scrapping does not entitle taxpayers to refunds or immunity from criminal proceedings already initiated on charges like tax evasion, even if demands now stand extinguished.
