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Interim Budget 2024 was announced on 01.02.2024 wherein there were no major announcements by our Hon’ble Finance minister as this is an interim budget and major decisions might come in the final budget which will come in July 2024 after the new government is formed.
However, one announcement was important for small taxpayers with old demands dating back to AY 2014-15 or even before. In the budget speech, Hon’ble Finance Minister proposed to withdraw or waive off the small, unresolved, unverified, or disputed direct tax demands pertaining to the financial years up to 2014-15.
The proposal aims to waive off the recovery of the old outstanding demands up to INR 25,000 for the period up to financial year 2009-10 and up to INR 10,000 for financial years 2010-11 to 2014-15.
This is not a part of Finance Act, but a part of relief announced by Finance minister and will be a part of internal circular of Income tax department.
Further, as per some news release and news articles, CBDT chairman has even said that this will be an automatic exercise by the Income tax officer themselves and taxpayer won’t be bothered for this.
It is important to note here that no relief has been provided by the Hon’ble Finance minister or she has not provided any relief to a situation where the refund of later years have been already adjusted such demand or where taxpayer has already paid such demand.
Further, there is no clarification as to whether the quantum of demand mentioned above includes the interest/ penalty charged for such year or not. We shall get some clarity may be in some upcoming circular from the Income tax department.
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