The Central Board of Direct Taxes (CBDT) recently hiked the deposit to 20% from the current 15% to get stay of recovery of demand till the disposal of first appeal.
In its recent office memorandum, the Board has prescribed a deposit of 20% of the disputed I-T demand by taxpayers for obtaining a stay pending disposal of the matter by the CIT (Appeals). Earlier, the aggrieved taxpayer had to deposit only 15% of the disputed income tax demand before approaching the CIT (Appeals).
As per the Office Memorandum issued by the Board on 29.02.2016, if the assesse pays 15% of the disputed demand, the Assessing Officer can grant stay till the disposal of the first appeal.
It stated that “In VIew of the Board’s efforts to contain over pitched assessments through several measures resulting in fairer and more reasonable assessment orders, the standard rate of 15% of the disputed demand is found to be on the lower side. Accordingly, it has been decided that the standard rate prescribed in O.M. dated 29.2.2016 be revised to 20% of the disputed demand, where the demand is contested before CIT(A). Thus, all references to 15% of the disputed demand in the aforesaid O.M dated 29.2.2016 hereby stand modified to 20% of the disputed demand Other guidelines contained in the a.M. dated 29.2.2016 shall remain unchanged.”
Read the full text of the Office Memorandum below.
