The central government is continuously working to simplify and streamline the tax system, aiming to reduce disputes. In this direction, Union Finance Minister Nirmala Sitharaman has reportedly given strict instructions to the Central Board of Direct Taxes (CBDT) to identify all departmental tax appeals involving amounts less than the “revised monetary limit announced by the Central Government in Budget 2024-25” and withdraw them within three months.
This move is part of a comprehensive initiative to enhance the efficiency of tax administration, reduce the legal burden on taxpayers, and alleviate the judicial system of unnecessary disputes.
“Good policies are not enough in themselves, the real meaning lies in their timely implementation,” the Finance Minister said while addressing senior tax officials during the 166th Income Tax Day celebrations on July 24.
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Budget 2024-25 makes major changes to the monetary limits for appeals:
The limit for the Income Tax Appellate Tribunal (ITAT) has been increased from Rs 50 lakh to Rs 60 lakh
The limit for High Courts has been increased from Rs 1 crore to Rs 2 crore
The limit for the Supreme Court has been increased from Rs 2 crore to Rs 5 crore.
Filing your tax return this year? Head to our detailed ITR Guide for everything you need to know.
Since the implementation of these new limits, 4,605 appeals have been withdrawn and appeals were not filed in 3,120 cases as they fell below the new limits. This has allowed the courts to focus on high-value cases, which is in line with the government’s intent of a faster and more efficient judicial process.
Cases involve disputed tax demands of over Rs 10 lakh crore
A total of 5.77 lakh tax appeals are currently pending, of which 2.25 lakh cases have been identified for disposal in FY 2025-26. These cases involve disputed tax demands totalling over Rs 10 lakh crore. The minister urged the CBDT to review sector-wise performance, resolve pending disputes quickly and analyse the root causes of litigation to find long-term solutions.
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