India raises financial threshold for filing appeals in tax dispute cases India raises financial threshold for filing appeals in tax dispute cases

India raises financial threshold for filing appeals in tax dispute cases
19 Jul 2018

The Indian government has raised the financial threshold for filing appeals in tax disputes and plans to withdraw many pending appeals.

The threshold for filing appeals in tribunals handling income tax cases has been doubled to Rs20 lakh (US$29,216), the Finance Ministry said. In the case of the high courts, the threshold is now Rs50 lakh (US$73,040), up from the previous Rs20 lakh (US$29,216). In the Supreme Court, it has been increased from Rs25 lakh (US$36,520) to Rs 1 crore (US$146,080).

As a result of these raised thresholds, 34% of direct tax appeals filed by the department with the Income Tax Appellate Tribunal (ITAT) will now be withdrawn, along with 48% of high court cases and 54% of cases in the Supreme Court.

The Finance Ministry told LiveMint: "This is a major step in the direction of litigation management of both direct and indirect taxes as it will effectively reduce minor litigations and help the department to focus on high value litigations."

Meanwhile, according to the New Indian Express, the Central Board of Direct Taxes (CBDT) has ordered Income Tax Department offices across the country to curb “high-pitched” assessments against taxpayers and discipline the assessing officers who make them.

A ‘high-pitched scrutiny assessment case’ is where the addition of income was found to have been made on frivolous grounds, where principles of natural justice were not observed or where the assessing officer was guilty of gross negligence when deciding a case.

The problem is that the local committees responsible for dealing with such cases have not done so in a satisfactory manner and must do more, said the CBDT. As a result, it advocated the launch of a publicity campaign to inform taxpayers that they can use this mechanism to redress their grievances if they are unhappy or feel their tax assessment was unfair.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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The Indian government has raised the financial threshold for filing appeals in tax disputes and plans to withdraw many pending appeals.

The threshold for filing appeals in tribunals handling income tax cases has been doubled to Rs20 lakh (US$29,216), the Finance Ministry said. In the case of the high courts, the threshold is now Rs50 lakh (US$73,040), up from the previous Rs20 lakh (US$29,216). In the Supreme Court, it has been increased from Rs25 lakh (US$36,520) to Rs 1 crore (US$146,080).

As a result of these raised thresholds, 34% of direct tax appeals filed by the department with the Income Tax Appellate Tribunal (ITAT) will now be withdrawn, along with 48% of high court cases and 54% of cases in the Supreme Court.

The Finance Ministry told LiveMint: "This is a major step in the direction of litigation management of both direct and indirect taxes as it will effectively reduce minor litigations and help the department to focus on high value litigations."

Meanwhile, according to the New Indian Express, the Central Board of Direct Taxes (CBDT) has ordered Income Tax Department offices across the country to curb “high-pitched” assessments against taxpayers and discipline the assessing officers who make them.

A ‘high-pitched scrutiny assessment case’ is where the addition of income was found to have been made on frivolous grounds, where principles of natural justice were not observed or where the assessing officer was guilty of gross negligence when deciding a case.

The problem is that the local committees responsible for dealing with such cases have not done so in a satisfactory manner and must do more, said the CBDT. As a result, it advocated the launch of a publicity campaign to inform taxpayers that they can use this mechanism to redress their grievances if they are unhappy or feel their tax assessment was unfair.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

OTHER ARTICLES THAT MAY INTEREST YOU

India launches whistleblower scheme for tax evasion

Indian tax authorities clarify double taxation situation for overseas workers

Number of people filing income tax in India jumps by 26%

 

 

 

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