Rs 1 lakh limit per individual for withdrawal of old tax demands

The government has begun getting rid of old outstanding small income tax demands after setting a ceiling of Rs 1 lakh per taxpayer. Taxpayers can check the status of the demands by logging on to the income tax portal online. The scheme will be implemented by the Bengaluru-based Directorate of Income Tax (Systems) at the Centralised Processing Centre (CPC), preferably within two months. It will be limited to Rs 1,00,000 per assesse.

During the interim budget, Finance Minister Nirmala Sitharaman had announced that the I-T department will withdraw small outstanding direct tax demands of Rs 25,000 or less which pertained to the period up to FY10 and of Rs 10,000 or less for the financial years from 2010-11 up to 2014-15.