Nitin Gupta, Chief of the Central Board of Direct Taxes (CBDT), announced that the income tax department has collected approximately Rs 4,600 crore in taxes from 56 lakh updated income tax returns filed by taxpayers over the past two years. In a post-budget interview, Gupta revealed that a demand management center has been established in Mysuru, Karnataka, to focus on resolving disputed large tax demands exceeding Rs 1 crore.
Gupta emphasized the department’s commitment to improving services and creating a litigation-free environment. He highlighted a facility for return updates, resulting in 56 lakh updated returns and the collection of around Rs 4,600 crore in taxes. The recent Interim Budget for 2024-25 also announced the withdrawal of outstanding small tax demands, benefiting about 80 lakh unique taxpayers.
The withdrawal pertains to small tax demands dating back to 1962, up to Rs 25,000, until 2014-15, related to income, wealth, and gift taxes. There are approximately 1.11 crore disputed demand entries, with an aggregate tax demand of Rs 3,500-3,600 crore.
Gupta clarified that the withdrawal of disputed demands aims to address entries on the books, acknowledging cases where taxpayers may have already paid the tax demand. The initiative aims to eliminate grievances and benefit both the department and taxpayers. He emphasized that the withdrawn amount of Rs 3,500 crore is insignificant compared to the annual collection of Rs 19.45 lakh crore. Gupta concluded that this is an opportune time to focus on significant demands and streamline collections, considering the limited manpower available.
