FM waives off disputed direct tax demand of Rs 10,000-25,000

Have you been facing an income tax demand for a matter that was challenged and there was no resolution in sight for years together? And fresh refunds too were being absorbed due to the old tax disputed amount? The Finance Minister Nirmala Sitharaman, during her presentation today, stated her intent to reduce such disputes of non-verified, petty, direct tax demands, which were in litigation since 1962.

Such outstanding direct tax demand of upto Rs 25,000 would be waived off for disputes linked upto 2009-10, the finance minister announced on February 1.

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Also, the outstanding demand upto Rs 10,000 would be waived off for disputes linked to financial year 2010-11 to 2014-15. The move is expected to benefit around 1 crore taxpayers.