News Business 56 lakh updated ITRs filed, Rs 4,600 crore taxes collected in two years: CBDT

56 lakh updated ITRs filed, Rs 4,600 crore taxes collected in two years: CBDT

The Budget announced the withdrawal of outstanding small tax demands dating back to 1962, up to Rs 25,000 till 2014-15.

Filing tax returns Image Source : PIXABAYFiling tax returns

The income tax department has collected around Rs 4,600 crore in taxes from 56 lakh updated income tax returns filed by taxpayers in the past two years, according to Nitin Gupta, the Chief of the Central Board of Direct Taxes (CBDT).

In a post-budget interview, Gupta mentioned that the department is continuously improving services and creating a litigation-free environment. The CBDT has set up a demand management centre in Mysuru, Karnataka, to focus on large disputed tax demands exceeding Rs 1 crore.

The Interim Budget 2024-25 announced the withdrawal of outstanding small tax demands dating back to 1962, up to Rs 25,000 till 2014-15, in respect of income, wealth, and gift taxes. This move is expected to benefit around 80 lakh unique taxpayers, addressing smaller tax demands separately from large ones through the demand management centre.

Gupta explained that the withdrawal of disputed demands is primarily on the books, and there could be cases where the taxpayer has already paid the tax demand, but it hasn't been updated in the system due to manual processes. The step to withdraw these demands aims to reduce taxpayer grievances and clean up the department's records.

He emphasised that the withdrawn amount of Rs 3,500 crore is relatively insignificant compared to the annual collection of Rs 19.45 lakh crore. The focus is on collecting significant demands, as the manpower required to recover or rectify smaller amounts would be disproportionate to the benefits gained. The budget for 2022-23 had introduced a scheme for filing updated returns in ITR-U form, allowing taxpayers to provide reasons for updating income within two years of the relevant assessment year.

(With PTI inputs)

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