The Central Board of Direct Taxes ( CBDT ) has issued an order dated February 13, 2024 announcing the remission and extinguishment of specific outstanding direct tax demands in line with the Budget 2024 speech of the Finance Minister.
These demands, up to particular monetary limits across various assessment years until 2015-16, are covered, with a maximum cap of ₹1,00,000 per taxpayer, excluding TDS/TCS demand entries.
The remission and extinguishment include the principal tax demand and associated interest, penalties, fees, cess, or surcharges under relevant provisions of the Income-tax Act, 1961, or corresponding provisions of the Wealth-tax Act, 1957, or Gift-tax Act, 1958. However, demands against tax deductors or collectors under TDS or TCS provisions are not included.
Additionally, interest calculations due to payment delays under section 220(2) of the Income-tax Act, 1961, or corresponding provisions of the Wealth-tax Act, 1957, and Gift-tax Act, 1958, will not be required following this remission.
Any new tax liability arising from specific clauses of the Income-tax Act, 1961, will also be remitted. The remission will be applied to each demand entry within the specified monetary limits, starting from the earliest assessment year to subsequent years, with the total demand entries not exceeding ₹1,00,000 for any specific taxpayer/ assessee for the following types of demand entries:-
a. Principal component of tax demand under the Income-tax Act, 1961 or corresponding provisions of Wealth-tax Act, 1957 or Gift-tax Act, 1958;
b. Interest, penalty, fee, cess or surcharge under various provisions of the Income-tax Act, 1961 or corresponding provisions, if any, of Wealth-tax Act, 1957 or Gift-tax Act, 1958.
The aforementioned remission and extinguishment of entries of outstanding demand shall not:-
(i) confer any right to claim credit of any of the remitted and extinguished demand by the taxpayer/assessee under Income-tax Act, 1961 or Wealth-tax Act, 1957 or Gift-tax Act, 1958 or any other law, where such benefit of remission and extinguishment has been allowed to such taxpayer/assessee, or
(ii) confer any right to claim refund of any sum by any taxpayer/assessee under Income-tax Act, 1961 or Wealth-tax Act, 1957 or Gift-tax Act, 1958 or any other law, or
(iii) have any effect on any criminal proceeding/s pending/ initiated or contemplated against the taxpayer/assessee under any Act or law and shall not be construed as conferring any benefit, concession or immunity to the taxpayer/assessee in any such proceedings under any Act or law other than as specifically provided in this order, where such benefit of remission and extinguishment has been allowed to such taxpayer/assessee.
Implementation of this order falls under the jurisdiction of the Directorate of Income-tax ( Systems )/ Centralized Processing Centre, Bengaluru ( CPC ), ideally within two months. Any rectification necessary for its execution will be handled by CPC, Bengaluru. CBDT will issue directions or clarifications for incidental actions needed to enforce this order effectively.
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