CIRCULAR WITH RESPECT TO WAIVER OF INCOME TAX OUTSTADING

• CBDT issued an order (F.No. 375/Feb/2023 dated 13-02-2024) permitting the extinguishment of old tax demands (income tax, wealth tax, gift tax) outstanding as of 31 January 2024.

• Monetary limits for waiver:

  • For demands up to AY 2010-11: Up to ₹25,000 per entry eligible for waiver.

  • For AY 2011-12 to AY 2015-16: Up to ₹10,000 per entry.

  • Overall: The total remission is capped at ₹1 lakh per assessee, regardless of the number of eligible years.

• Exclusion: This waiver does not apply to demands arising from TDS/TCS liabilities.

• The amount includes the principal tax + penalty/interest/fee/cess/surcharge, but interest for late payment (u/s 22 0(2)) is not considered for limit calculation.

Refer:   

https://www.incometax.gov.in/iec/foportal/sites/default/files/2024-02/Attachment.pdf

https://www.incometax.gov.in/iec/foportal/sites/default/files/2024-02/Attachment.pdf