An interim action plan for the fiscal year 2024–2025 has been issued by the Income Tax department. It will address issues including finding instances of TDS short-payment, accelerating the processing of appeals, and other things.
The plan establishes due dates for compounding proposals, asset release, and reimbursement approvals. Additionally, situations involving confiscated assets that must be released by June 30, 2024, are identified and stated.
The plan also required compounding proposals that were outstanding as of March 31, 2024, to be finalized, and it mandated that at least 150 appeals be handled by June 30.
Sandeep Sehgal, a tax partner at AKM Global, described the procedure and said that the Central Board of Direct Taxes (CBDT) is attempting to increase the effectiveness of tax administration through this approach. Grievances may be addressed immediately by using the CPGRAM and e-Nivaran platforms.
"Taxpayers are now required to file applications before the assessing officer for pending refunds pertaining to their respective assessments," Sehgal told PTI, a news agency.
In order to improve taxpayer cash flows, the proposal also attempts to expedite the determination of applications for Nil/Lower TDS or TCS Certificates within a month of receipt starting on April 1, 2024. Prioritizing the resolution of audit objections, the goal is to resolve both large and small objections by June 30, 2024.
"The proactive steps listed in the action plan highlight CBDT's dedication to generating income while also creating an atmosphere that facilitates compliance. This is in line with the government's main objective of raising taxpayer trust and encouraging compliance," stated Sehgal.
The rules center on tax collection, dispute settlement, and data update for improved fiscal administration, according to Aravind Srivatsan, Nangia Andersen Tax Leader.
The guidelines' great level of detail draws attention to the government's careful planning on many fronts. The ultimate goal of these instructions is to keep things as they are, making sure that tax collection goals are met, supporting fiscal management and reducing the need for further borrowing. Protecting tax collection is the main goal, according to Srivatsan.
