The CBDT says Rs 4,600 crore from 56 lakh taxpayers’ revised returns have been collected in the past two years. Improved services and a litigation-free atmosphere are the department’s goals.
Nitin Gupta, Chief of the Central Board of Direct Taxes, said the income tax department collected Rs 4,600 crore from 56 lakh updated income tax returns in the past two years.
Gupta stated in a post-budget interview that the department is improving services and preventing litigation. A CBDT demand processing centre in Mysuru, Karnataka, handles significant disputed tax demands over Rs 1 crore.
Small income, wealth, and gift tax demands from 1962 to Rs 25,000 till 2014-15 were withdrawn in the Interim Budget 2024-25. This strategy will assist 80 lakh unique taxpayers by separating small and major tax claims through the demand management facility.
Gupta noted that the removal of challenged claims is mostly on the books, and manual processes may prevent the taxpayer from updating the system after paying the tax demand. These demands are being removed to lessen taxpayer complaints and clean up department records.
He stressed that the Rs 3,500 crore withdrawal is small compared to the Rs 19.45 lakh crore annual revenue. The focus is on collecting large demands because the manpower needed to recover or correct lesser amounts would be disproportionate to the advantages. The 2022-23 budget allowed taxpayers to file revised ITR-U forms within two years of the relevant assessment year and cite reasons for updating income.
Conclusion
The CBDT has collected Rs 4,600 crore from 56 lakh taxpayers’ revised returns in the past two years. Improved services and a litigation-free atmosphere are CBDT goals. Minor income, wealth, and gift tax demands up to Rs 25,000 from 2014-15 were waived in the Interim Budget 2024-25. The focus is on collecting large demands because the manpower needed to recover or correct lesser amounts would be disproportionate to the advantages.
