The Central Board of Direct Taxes (CBDT) Chairman, Nitin Gupta, has announced a potential tax relief of up to ₹1 lakh for taxpayers, alongside a major recruitment initiative to fill approximately 12,000 vacancies, marking significant strides in easing taxpayer burdens and bolstering the department’s efficiency.
Up to ₹1 Lakh Tax Relief in Interim Budget:
Under the provisions announced in the interim budget, taxpayers with outstanding tax demands up to ₹25,000 may see these demands withdrawn, potentially benefiting them with up to ₹1 lakh in relief.
This move is aimed at aiding those who have received tax demand notices for periods extending over a year. Approximately 80 lakh taxpayers stand to benefit from this initiative, demonstrating the government’s commitment to alleviating the financial pressures on individuals.
Filling 12,000 Vacancies:
CBDT’s announcement also highlighted a significant staff shortfall in the Income Tax Department, with 10,000 to 12,000 vacancies, primarily in Group C categories. Steps are being taken to fill these positions, promising not only to streamline departmental operations but also to enhance taxpayer services.
This recruitment drive is expected to substantially reduce the workload and improve the efficiency of tax administration across the country.
Financial Year 2009-10 to 2014-15 Direct Tax Demand Withdrawal:
Finance Minister Nirmala Sitharaman, in her budget speech for 2024-25, announced the withdrawal of outstanding direct tax demands up to ₹25,000 for financial years 2009-10 and ₹10,000 for financial years 2010-11 to 2014-15.
This decision underscores the government’s intent to provide relief and clear pending tax demands, streamlining the tax system for millions of Indians.
Objective and Implementation:
The primary goal of these measures is to offer substantial relief to taxpayers, ensuring a limit of up to ₹1 lakh relief per taxpayer for those who have been facing long-standing tax demands.
The CBDT plans to issue necessary orders to implement this relief effectively, signifying a significant step towards simplifying the tax system and reducing the compliance burden on taxpayers.
Impact on Tax Collection and Returns:
Gupta also noted an increase in direct tax collection, with ₹14.46 lakh crores collected by January 31, marking a 20% increase over the previous year.
Furthermore, the total returns filed have reached 18.5 crores, with nearly 18.2 crores for the financial year 2023-24, indicating robust participation and compliance from the taxpayer community.
This suite of measures by the CBDT, from tax relief to recruitment drives, is poised to strengthen India’s tax administration, enhance operational efficiencies, and significantly benefit millions of taxpayers across the nation.