Govt Says Higher Tax Appeal Limits Cut Disputed Tax Demand by Rs 16,690 Crore

The government's decision to raise the monetary limits for filing tax appeals has reduced disputed tax demand by an estimated ₹16,690 crore, Finance Minister Nirmala Sitharaman told the Lok Sabha. Since the revised limits took effect on September 17, 2024, thousands of departmental appeals have been withdrawn or not filed across the Income Tax Appellate Tribunal (ITAT), High Courts, and the Supreme Court. The government had increased the appeal thresholds to ₹60 lakh for ITAT, ₹2 crore for High Courts, and ₹5 crore for the Supreme Court under the Union Budget 2024–25. Sitharaman also said the Central Board of Direct Taxes has introduced several taxpayer-friendly reforms over the past 12 years, including pre-filled ITRs, faceless assessments, and simplified compliance measures to improve transparency and ease of doing business.

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