Central government offers relief: Tax demand up to Rs 1 lakh waived for crore taxpayers

• Central Government announces waiver of tax demands up to Rs 1 lakh per taxpayer for assessment year 2015-16, providing significant relief to taxpayers
• CBDT issues order specifying conditions for the waiver, including a deadline of January 31, 2024, and coverage of Income Tax, Wealth Tax, and Gift Tax
• Approximately 1.11 crore taxpayers stand to benefit from this initiative, with an estimated total withdrawal of tax demands amounting to around Rs 3,500 crore

The Central Government has unveiled a substantial relief measure for taxpayers, declaring the waiver of tax demands up to Rs 1 lakh per taxpayer for the assessment year 2015-16. This announcement comes as welcome news for millions of taxpayers grappling with financial burdens. Expert advice on how taxpayers can benefit from this new provision is eagerly sought after, as the Central Board of Direct Taxes (CBDT) takes steps to implement the decision following Finance Minister Nirmala Sitharaman's interim budget announcement.

The CBDT's order, which stipulates a deadline of January 31, 2024, underscores the government's commitment to providing timely relief to taxpayers by addressing outstanding tax demands related to Income Tax, Wealth Tax, and Gift Tax. The waiver encompasses various components of tax demand, including the principal amount, interest, penalty, charges, cess, and surcharge, providing comprehensive relief to eligible taxpayers.

However, it's important to note that the exemption does not extend to tax demands against tax deductors or collectors under the TDS or TCS provisions of the Income Tax Act. With approximately 1.11 crore taxpayers set to benefit from this initiative, totaling a withdrawal of tax demands amounting to around Rs 3,500 crore, the government's decision signifies a substantial effort towards easing the financial burden on taxpayers and fostering economic stability.