Are You Eligible? Govt Introduces Rs 1 Lakh Income Tax Relief Under New Waiver Rule
In a step that is expected to give some relief to small taxpayers, the govt has recently announced an income tax waiver upto Rs 1 lakh. The maximum ceiling limit for waiving eligible income tax demands has been set at Rs 1 lakh by the Central Board of Direct Taxes (CBDT). Nevertheless, CBDT stated in an order dated February 13, 2024, that future interest will not be included in determining the total amount of income tax demand.
In a step that is expected to give some relief to small taxpayers, the govt has recently announced an income tax waiver upto Rs 1 lakh.
Rs 1 Lakh Income Tax Relief Under New Waiver Rule
income tax/shutterstock
The maximum ceiling limit for waiving eligible income tax demands has been set at Rs 1 lakh by the Central Board of Direct Taxes (CBDT). Nevertheless, CBDT stated in an order dated February 13, 2024, that future interest will not be included in determining the total amount of income tax demand. The scheme aims to provide relief to taxpayers burdened with old outstanding tax demands.
CBDT said in the order, "Consequent to the aforesaid remission and extinguishment of entries of outstanding demand, there shall not be requirement of calculation of interest on account of delay in payment of demand under sub-section (2) of section 220 of the Income-tax Act, 1961 or corresponding provisions of Wealth-tax Act, 1957 and Gift-tax Act, 1958 and therefore, the same shall not be considered for the purpose of determining the ceiling of Rs 1 lakh."
Taxpayers, check ITR portal now: Pending tax demand of up to Rs 1 lakh per individual waived by govt
〞 CA Chirag Chauhan (@CAChirag) February 19, 2024
The Central Board of Direct Taxes (CBDT) via an order dated February 13, 2024, stated that the tax department has started remitting and extinguishing eligible old tax demands＃ pic.twitter.com/aqEQ7jSEFD
Also Read: From UAE To Kuwait: List Of Countries That Have Zero Income Tax
What All Will The Tax Waiver Of Rs 1 Lakh Include?
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Also Read: Who Was James Wilson? The Man Who Introduced Income Tax In India
As of January 31, 2024, the waiver of outstanding demands will apply to any outstanding demands pertaining to wealth tax, gift tax, or income tax. The waiver will apply to demands up to Rs. 10,000 from financial year 2010每11 to financial year 2014每15, and up to Rs. 25,000 from financial year 2009每10.
This includes interest, penalty, and cess; if the total outstanding demand is less than the designated amount, the entire outstanding demand will be waived. Demands made under the TDS or TCS provisions of the I-T Act against tax deductors or collectors will not be subject to the remission.
But each taxpayer can only receive a maximum of Rs.1,00,000 in total waiver. For a taxpayer or entity, the waiver will only apply to eligible demands totaling ?1,00,000 or less; if the total of all outstanding demands exceeds Rs. 1,00,000, the remaining demands will still be applicable. Refunds cannot be requested in exchange for the demands being dropped.
Income Tax Slabs Under New & Old Tax Regime
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NEW REGIME
Up to Rs 3 lakh: NIL
Rs 3 lakh- Rs 6 lakh: 5%
Rs 6 lakh-Rs 9 lakh: 10%
Rs 9 lakh-Rs 12 lakh: 15%
Rs 12 lakh- Rs 15 lakh: 20%
Over Rs 15 lakh: 30%
OLD REGIME
Income tax slabs for individuals aged below 60 years & HUF
Income Tax Slab | Individuals Below The Age Of 60 Years |
Up to Rs 2.5 lakh | NIL |
Rs. 2.5 lakh -Rs. 5 lakh | 5% |
Rs 5.00 lakh 每 Rs 10 lakh | 20% |
> Rs 10.00 lakh | 30% |
Income tax slab for individuals aged above 60 years to 80 years
Income Tax Slab | Senior Citizens (Aged 60 Years But Less Than 80 Years) |
Rs 0 每 Rs. 3.00 lakh | NIL |
Rs 3.00 lakh 每 Rs 5.00 lakh | 5% |
Rs 5.00 lakh 每 Rs 10 lakh | 20% |
> Rs 10 lakh | 30% |
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