The Income Tax department has set a ceiling of Rs 1 lakh per taxpayer for the withdrawal of small tax demands. This decision follows the announcement made in the interim budget regarding the withdrawal of direct tax demands. The Income Tax department, through an official order, has outlined the criteria for the withdrawal, with a focus on demands until the assessment year 2015-16.

Finance Minister Nirmala Sitharaman, in the interim budget for 2024-25, had previously declared that tax demands for the assessment year 2010-11, up to Rs 25,000, and for the assessment years 2011-12 to 2015-16, up to Rs 10,000, would be withdrawn. This move is expected to benefit taxpayers and alleviate financial burdens.

The tax department’s order specifies that outstanding demands related to income tax, wealth tax, and gift tax as of January 31, 2024, will be remitted and extinguished. However, this is subject to a maximum ceiling of Rs 1 lakh for any specific taxpayer or assessee. The limit encompasses the principal component of tax demand, along with interest, penalty, fee, cess, and surcharge.

This remission will not apply to demands raised against tax deductors or tax collectors under the Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) provisions of the Income-tax Act.

In the recent order, the Central Board of Direct Taxation (CBDT) clarified that the Rs 1 lakh limit covers outstanding demand entries in the tax authorities’ books concerning the principal tax component, as well as interest, penalty, fee, cess, or surcharge under the three tax acts.

However, the extinguishment of demands does not grant taxpayers any claims for credit or refunds. Additionally, this action does not provide immunity from any pending, initiated, or contemplated criminal proceedings against the taxpayer.

The CBDT said that demand falling within the prescribed limits, even if eligible for withdrawal, will not be extinguished if raised against entities required to deduct or collect tax at source under the Income-tax provisions related to TDS or TCS. 

Coming down heavily on the Mamata Banerjee government over the situation in Sandeshkhali, the Calcutta High Court today said local Trinamool Congress strongman Sheikh Shahjahan “cannot be on the run” and the “state cannot support” him.

Hearing BJP leader Suvendu Adhikari’s request for permission to visit Sandeshkhali, Chief Justice TS Sivagnanam said the court has noted allegations made by women on the island. “We have seen the grievances, the women of the area have flagged issues, there has been some land grabbing. This person (Sheikh Shahjahan) cannot be on the run. The state cannot support it. In the suo motu matter, we will ask him to surrender here. He can’t be defying law,” the Chief Justice said, according to Live Law.

“If one person can hold the entire population to ransom, the ruling dispensation should not support him. He is just a representative of the public. He is bound to do good to the public,” he added.

The Chief Justice said “prima facie material” shows that Shahjahan “has done damage to the public”. “He is on the run after committing alleged crimes. We don’t know if he’s protected but unable to be secured. That could mean that state police are not able to secure him, or he is outside their jurisdiction,” he said.

Questioning the decision to clamp prohibitory orders when Shahjahan remains on the run, the court told the state government’s counsel, “You are just creating a tense situation. You are unnecessarily harassing locals. Like in Covid, people were going into depression because they are confined to their homes. Let people speak out. Just because people say something, the accused will not become a convict. If you shut them out, that will not work.”

The state government had challenged the court’s order to pause prohibitory orders in the area, citing the law and order situation. The state’s counsel said it is not opposed to local people or Constitutional functionaries moving around in the area, but fears visits by political leaders can spark trouble. 

Shahjahan has been on the run for a month now after a team of Enforcement Directorate, which had gone to raid his home near Sandeshkhali in a corruption case, came under a mob attack. Over the last couple of weeks, local residents have come out with allegations of land grab and extortion against the Trinamool strongman and his aides. The BJP has also accused the ruling party leaders of sexual assault of women in Sandeshkhali. A total of 17 people, including Shahjahan’s aides Uttam Sarkar and Shibu Hazra, have been arrested.

The Trinamool Congress government has accused the BJP of fomenting trouble in the area. Chief Minister Mamata Banerjee has alleged BJP workers were taken to the island to instigate violence. “The primary target was Sheikh and ED entered the area. Then they ousted everyone from there and fabricated an adivasis versus minorities fight,” she has said. “This is not new. The RSS has a base there. Riots took place there 7-8 years back. It is one of the most vulnerable riot spots,” she added.

The high court today noted that Bengal police has been unable to arrest Shahjahan despite multiple cases against him and an attack on ED officials. “It is rather surprising that the person, who is the core of the problem cannot be apprehended till date and is on the run,” the Chief Justice said.

The court has now allowed Mr Adhikari and BJP MLA Shankar Ghosh to visit the island, upholding a single-bench order that had cleared their visit. Despite the order, the BJP leaders were stopped on their way to Sandeshkhali this morning.

The Congress in Karnataka has filed a police complaint accusing the BJP of trying to ‘poach’ two independent MLAs and two from local parties before voting next week to fill four Rajya Sabha seats from the state.

The Congress – which defeated the BJP in last year’s Assembly election – has alleged several crore rupees have been offered to two independent MLAs and two others from local parties. The ruling party has claimed the two independents and at least one of the other two were ready to back its candidates.

The BJP has rubbished the Congress’ accusations.

Controversy over the four seats – which will fall vacant on April 2 – broke after Kupendra Reddy of the Janata Dal (Secular), which is allied with the BJP, was fielded as a fifth candidate.

At present the Congress holds three of the four seats, and has opted to retain Syed Nazeer Hussain, while giving Dalit writer L Hanumanthaiah’s seat to former Union Minister Ajay Maken. The BJP, meanwhile, has given Union Minister Rajeev Chandrashekhar’s seat to Narayana Bhandage.

The row is over the fourth seat – held for now by the Congress’ GC Chandrasekhar.

In Karnataka, a party needs 46 MLAs to send one of its leaders to the Rajya Sabha.

The Congress has 135 lawmakers in the Assembly and claims the support of the two independent MLAs and a third, which gives it just enough to retain its three seats that fall vacant in this round.

Should those three not back the Congress, it could lose the seat to the BJP-JDS, which has a combined 85 MLAs. The two do not have the numbers, by themselves, to win the fourth seat unopposed, but might snatch the seat thanks to the preferential voting system.

The Congress’ complaint is that the BJP-JDS fielding a fifth candidate is an indication it will indulge in horse-trading. “The NDA has fielded a fifth candidate to encourage horse trading. We have filed the complaint (with the Bengaluru Police Commissioner) and have said more details will be provided.”

The Congress has claimed the three independent MLAs have been approached via intermediaries, including professionals like hotel owners and doctors. Deputy Chief Minister DK Shivakumar has denounced the candidature of Mr Reddy as the BJP and JDS trying to manipulate the votes.

Mr Reddy, meanwhile, has told NDTV, “These are independent MLAs (and) I have every right to canvas for votes. I did not offer any money to them.”

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