NEW DELHI: Brushing aside the criticism that the tax department is refusing refunds by adjusting them with tax dues dating back to 10-12 years, Chairman of the Central Board of Direct Taxes (CBDT) Nitin Gupta said outstanding demands must be adjusted, regardless of their age.
In an exclusive interaction with this paper, Gupta said that there is no time limit for the collection of demand and clarified that even cases dating back several years can still be pursued.
Gupta said that if a case from 2005-06 is decided in the present, relief or rejection, will be granted accordingly. He emphasized that all necessary demands will be raised, and appeals will be processed, irrespective of the year in question.
“If there is an outstanding demand then it has to be adjusted. If it is a 5-year-old demand, is it not collectable?
There is no time limit to that. If you open a case today, you will create the demand today. Whatever demands have to be raised will have to be raised, appeal effect will have to be irrespective of whether it pertains to 2002, 2003 or 2004-05,” Gupta said.
“The taxpayers are given the opportunity by the tax department by sending them the demand notice, and the taxpayer can respond to that. Taxpayers should avail the opportunity and come up with the claim that he has paid the demand or facts of the matter. It could be that he paid the demand but it has not been entered into the system,” he said.
Gupta further added that if the refund is smaller than Rs 5000, then the tax department releases the refund, even if there is a demand,” he added. Gupta expressed confidence in the government’s ability to achieve the direct tax collection target for the current fiscal year.
He informed that the government collected Rs 100 crore in tax deducted at source (TDS) from crypto exchanges over the past six months till September. Gupta further said that tax rates for High Net Worth Individuals (HNIs) at 39% are comparatively lower than those in the US, UK, and other developed countries. He affirmed that the government has moved forward with the new tax regime and does not anticipate changes in the old regime.
Rs 100 cr TDS from crypto exchanges in 6 months till September
The CBDT Chairman said that the government collected Rs 100 crore in tax deducted at source (TDS) from crypto exchanges over the past six months till September. Gupta further said that tax rates for High Net Worth Individuals (HNIs) at 39% are comparatively lower than those in the US, UK, and other developed countries