- The Income Tax (IT) department is concerned about the increase in tax arrears, which reached ₹24.51 lakh crore as of March 31, 2023.
- The department aims to reduce tax arrears to 40% of total tax demands in the current fiscal year.
- The target is to collect a minimum of ₹2.06 lakh crore of arrears this fiscal.
- Unpaid taxes by both corporations and individuals contribute to tax arrears, including demands in litigation or under dispute.
- Arrears accumulate with interest and penalty, leading to a rise in the overall figure. The tax department has instructed officers to make concerted efforts to reduce arrears promptly.
- Mumbai tops the list of regions with the highest arrears at ₹6.97 lakh crore, followed by Delhi, Gujarat, and Tamil Nadu with arrears at 4.21 lakh crore, 1.65 lakh crore and 1.62 lakh crore respectively according to sources.
- The Chief of the income tax department emphasizes time-bound tasks like reconciliation, appeals disposal, and rectification orders to meet reduction targets.
- The outcome remains uncertain regarding how much of the arrears will be successfully collected, impacting overall tax collections. An amnesty scheme and expedited litigation resolution are suggested approaches to reduce arrears
If you have any o/s tax demand or any sort of refunds/ any sort of litigation are pending with Income tax department you can reach us anytime
www.startupstreets.com, www.intellexCFO.com, www.intellexconsulting.com, www.economiclawpractice.com