Agencies
New Delhi :With about Rs 5 trillion stuck in litigations, the government has decided to hike the threshold monetary limit for tax department to file appeals in tribunals and courts to bring down litigation by 41 per cent, Finance Minister Piyush Goyal said .
Goyal said the tax department can file appeals in ITAT/CESTAT only if the tax amount involved is Rs 2 million or more, up from Rs 1 million at present.
Appeals would be filed in High Courts if the tax amount involved in litigation is Rs 5 million, up from Rs 2 million at present. For appeals in Supreme Court, the threshold limit has been hiked to Rs 100 million, from Rs 2.5 million at present.
He said the move is to create trust in the tax administration and give relief to honest, small and mid-sized taxpayers.
The move will result in 41 per cent reduction in overall tax cases, he told reporters in Delhi.
The higher limit would mean that 34 per cent of the tax cases filed in Income Tax Appellate Tribunal (ITAT) will be withdrawn while 48 per cent of the cases in High Courts would be withdrawn. Similarly, 54 per cent of cases in the Supreme Court will be withdrawn.
Besides giving relief to taxpayers, the move is also based on premise that the cost of litigation is sometimes more than the recovery sought, he said.
(Except for the headline, this story has not been edited by The Kashmir Monitor staff and is published from a syndicated feed.)
