Supreme Court Resolves 573 Tax Cases Under Rs5 Crore, Eases Business in India
The Supreme Court of India has resolved 573 direct tax cases with a tax effect of less than Rs5 crore. This follows the revised monetary limits for filing appeals, as part of the Union Budget 2024-25. The new limits aim to reduce tax litigation and improve the Ease of Doing Business.
New Monetary Limits
The Union Budget 2024-25 increased the monetary limits for filing appeals related to Direct Taxes, Excise, and Service Tax. The new limits are:
| Forum | New Limit |
|---|---|
| Income Tax Appellate Tribunal (ITAT) | Rs60 lakh |
| High Courts | Rs2 crore |
| Supreme Court | Rs5 crore |
Following these changes, the CBDT and CBIC issued orders to raise the monetary limits for filing appeals in their respective areas.
Impact
Due to these revised limits, it is estimated that approximately 4,300 cases will be withdrawn from various judicial forums over time. The Finance Ministry stated that these initiatives reflect the government’s commitment to improving the ‘Ease of Living’ and ‘Ease of Doing Business’ by reducing pending litigation.
Additionally, more officers will be deployed to hear and decide income tax appeals, especially those involving substantial tax amounts.
Doubts Revealed
Supreme Court -: The Supreme Court is the highest court in India. It makes important decisions that affect the whole country.
direct tax cases -: Direct tax cases are disputes about taxes that people or businesses have to pay directly to the government, like income tax.
Rs5 crore -: Rs5 crore is a way to say 5 crore rupees, which is 50 million rupees. It’s a large amount of money.
Union Budget 2024-25 -: The Union Budget is a plan by the Indian government about how it will spend money and collect taxes for the year 2024-25.
Ease of Doing Business -: Ease of Doing Business means how easy or hard it is for people to start and run businesses in a country.
Income Tax Appellate Tribunal -: The Income Tax Appellate Tribunal is a special court in India that deals with disputes about income tax.
High Courts -: High Courts are important courts in different states of India. They handle serious legal cases.
pending litigation -: Pending litigation means legal cases that are still waiting to be resolved or decided.
