Budget 2024: Old outstanding income tax demands up to ₹25,000 to be withdrawn

Union Finance Minister Nirmala Sitharaman proposed to withdraw outstanding direct tax demands dating to years and decades ago.

There are some old disputed tax demands — some of them dating back to 1962 — causing anxiety to the honest tax payers.

“There are disputed tax demands some of them dating back to 1962 causing anxiety to the honest tax payers, so I propose to withdraw such outstanding direct tax demand up to ₹25,000 pertaining to the period up to F Y 2009-10 and up to ₹10,000 up to 2010-11 to 2014-15,” said Sitharaman in the Budget speech.

Also Read: Income Tax Budget 2024 Live Updates

This is expected to benefit one crore tax payers, she added.

In the interim Budget 2024, she did not introduce any change in the tax rates for direct or indirect tax rates, however, the finance minister extended the last date for tax benefits to start-ups and wealth & pension funds.

“In keeping with the convention, there is no change in tax rates,” the FM said.

“Tax benefits to start-ups and investments made by sovereign wealth or pension funds, and also tax exemptions on certain income of some IFSC units are expiring on March 31, 2024, to provide continuity in taxation, I propose to extend the date to 31, March 2025," she added.