10 Million Taxpayers Get Relief with Center’s Amnesty Plan
- Withdrawal of Outstanding Tax Dues:
- More than 10 million taxpayers, especially small salary earners, will see long-pending notices for income tax, wealth tax, and gift tax dues withdrawn.
- An amnesty plan covers dues up to ₹25,000 for cases before the 2009-10 financial year and up to ₹10,000 for cases between 2010-11 and 2014-15, which have been disposed of.
- Interim Budget Proposal:
- Sitharaman presented the Union interim budget for the 2024-25 financial year, emphasizing government efforts to support businesses and taxpayers.
- She announced the withdrawal of outstanding direct tax demands to benefit approximately one crore taxpayers.
- Resolution of Old Tax Demands:
- Many old, petty, non-verified, or disputed direct tax demands, some dating back to 1962, have caused anxiety for honest taxpayers and hindered refunds.
- The move aims to reduce the burden of old litigations on tax departments and courts.
- Objective and Impact:
- Withdrawal of old tax demands is expected to ease the burden on taxpayers and courts, addressing demands related to estate duty and banking cash transaction tax.
- This step aligns with the government’s goal of reducing litigation and creating a more taxpayer-friendly environment.
- Extended Tax Benefits:
- The interim budget maintains existing direct and indirect tax rates and extends tax benefits for specific sectors by one year.
- Tax advantages for start-ups, investments through sovereign wealth or pension funds, and specific income of certain IFSC units are extended until March 31 of the following year.
- Response from Tax Experts:
- While no major tax changes were announced, the extension of tax benefits for start-ups, sovereign wealth funds, pension funds, and IFSC units until March 31, 2025, was welcomed by investors.
- The move ensures continuity in taxation and addresses the expectations of the investor community.
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