• Notification Date: 12-04-2024
• Notification No: N/A

Income Tax Dept releases Interim Plan for FY25; Focuses on TDS

The income tax department has unveiled an interim action plan for the fiscal year 2024-25, focusing on key areas such as identifying cases of TDS short-payment and expediting appeals processing. 
 
The plan sets deadlines for refund approvals, asset release, and compounding proposals. Moreover, identification of cases is also mentioned, where seized assets are due for release and release the same by June 30, 2024. 

It emphasizes prioritizing appeals filed before and after April 1, 2020. The plan also stipulated that at least 150 appeals must be resolved by June 30 and that compounding proposals that were pending as of March 31, 2024, must be finalised. 

AKM Global's Tax Partner, Sandeep Sehgal, highlighted the Central Board of Direct Taxes' (CBDT) efforts to enhance tax administration efficiency through the plan. Immediate steps include addressing grievances through e-Nivaran and CPGRAM platforms. 
 
"Taxpayers are now required to file applications before the assessing officer for pending refunds pertaining to their respective assessments. 
This proactive approach aims to expedite the refund process, offering considerable relief to taxpayers and fostering a structured framework to bolster tax administration efficiency," PTI quoted Sehgal as saying. 

The plan also aims to speed up Nil/Lower TDS or TCS Certificates applications resolution within a month of receipt from April 1, 2024, benefiting taxpayers' cash flows. Audit objection resolutions are prioritized, targeting settlement of major and minor objections by June 30, 2024. 
 
Sehgal praised the proactive measures for revenue generation and compliance culture. 

"The proactive measures outlined in the action plan underscore CBDT's commitment to revenue generation, while concurrently fostering an environment conducive to ease of compliance. This aligns with the government's overarching goal of enhancing taxpayer confidence and promoting a culture of compliance," Sehgal said. 
 
Tax Leader at Nangia Andersen, Aravind Srivatsan, emphasized the guidelines' focus on tax collections, dispute resolution, and data updating for better fiscal management. 

"The detailed nature of the guidelines highlights the meticulous planning undertaken by the government across various fronts. Ultimately, these directives aim to maintain business as usual, ensuring adherence to tax collection targets, thereby bolstering fiscal management and mitigating the need for additional borrowing. In essence, the objective is to safeguard tax collection," PTI quoted Srivatsan.