Income Tax: Verify the Status of Cleared Small Outstanding Tax Demands
The income tax (I-T) department has declared that eligible pending direct tax demands, particularly those below ₹1 lakh, have been cleared and resolved. This brings relief to taxpayers who were burdened with minor tax liabilities from the department.
This action was taken in response to an announcement made by Union Finance Minister Nirmala Sitharaman during the interim Budget.
How to check Your status?
To verify the status of your case and determine whether the tax demand has been waived off, the department recommends the following steps:
A. Navigate to: pending action > response to outstanding demand.
B. Check for the status of ‘extinguished demands’ in your case.
C. If you have any further questions or concerns, you can contact 1800 309 0130.
D. Alternatively, you may send an email to taxdemand@cpc.incometax.gov.in for assistance with your concerns.
Withdraw tax demands
It’s important to note that the government proposed the withdrawal of outstanding direct tax demands dating back several years and decades.
Some of these old disputed tax demands, stretching as far back as 1962, have been causing concern for honest taxpayers.
“In light of disputed tax demands, some dating back to 1962, causing distress for honest taxpayers, I propose to withdraw such outstanding direct tax demands up to ₹25,000 for the period up to FY 2009-10 and up to ₹10,000 for the years 2010-11 to 2014-15,” stated Sitharaman during the Budget speech. This move is anticipated to benefit approximately one crore taxpayers.
In other news, the Life Insurance Corporation of India (LIC) announced that it has received refund orders totaling ₹21,740.77 crore from the Income Tax Department. These refund orders pertain to Assessment Years 2012-13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19, and 2019-20.