Disputed tax demand down Rs 16,690 cr since hike in monetary limit for filing appeals, LS told

New Delhi: The increase in monetary thresholds for filing tax dispute appeals at ITAT, high courts, and the Supreme Court has led to about Rs 16,690 crore reduction in disputed tax demand, Parliament was informed on Monday.

In a written reply to the Lok Sabha, Finance Minister Nirmala Sitharaman gave details of the total number of cases withdrawn/not filed, and the estimated reduction in disputed tax demand due to enhanced monetary limits for filing departmental appeals, from September 17, 2024.

About 443 cases have been withdrawn and while 11,390 appeals were not filed before the Income Tax Appellate Tribunal (ITAT) after the increase in monetary threshold. The total estimated reduction in disputed tax demand at ITAT was Rs 3,662.82 crore.


Similarly, 4,791 cases were withdrawn and 5,565 appeals were not filed before the high courts. The reduction in disputed demand was an estimated Rs 9,218.71 crore.

At the Supreme Court, 744 cases were withdrawn and appeals not filed in 534 cases. This resulted in an estimated Rs 3,807.15 crore reduction in disputed tax demand.

Taken together, the total estimated reduction in disputed tax demand at ITAT, HC, and SC stood at Rs 16,690 crore.

The government in the Union Budget 2024-25 enhanced monetary limit for filing appeals related to direct taxes in the tax tribunal, high courts and the Supreme Court to Rs 60 lakh, Rs 2 crore, and Rs 5 crore respectively.

Sitharaman also said the Central Board of Direct Taxes (CBDT) has taken a number of measures over the last 12 years to ease tax compliance and improve taxpayer services.

Some of the key initiatives taken during the last 12 years include the introduction of pre-filled ITRs; new Form 26AS; facility to file updated return; introduction of Faceless Assessment and Faceless Appeal Schemes; removal of higher TDS/TCS for non-filers of return of income; rationalisation and simplification of safe harbour regime and expansion of presumptive taxation scheme.

"These measures have significantly simplified tax compliance, reduced the compliance burden, enhanced transparency, promoted voluntary compliance and improved taxpayer services," Sitharaman added.