CBDT Announces Interim Action Plan for Fiscal Year 2024-25

New Delhi: The Central Board of Direct Taxes (CBDT) under the finance ministry has come out with an interim action plan for 2024-25 fiscal year, which include identification of potential cases of prosecution, wherein there is short-payment of TDS and faster disposal of appeals. The action plan also stipulates timeline for approval of refunds, identification of cases where seized assets are due for release and release the same by June 30, 2024.

The move of the department also prioritises the resolution of audit objections, aiming to settle 50 per cent of major and 75 percent of minor internal as well as revenue audit objections received by December 31, 2023 and plans to settle them by June 30, 2024. This proactive stance facilitates timely remedial actions and optimises procedural efficiency.

The income tax department also called for finalisation of compounding proposals pending as on March 31, 2024, and disposal of at least 150 appeals by June 30. “Priority should be given to disposal of the appeals filed prior to April 1, 2020, followed by disposal of appeals filed after April 1, 2020, it said.

AKM Global, Partner- Tax, Sandeep Sehgal said the Central Board of Direct Taxes (CBDT) has unveiled its interim action plan for FY 2024-25, marking a significant stride towards enhancing tax administration efficiency. Immediate measures have been initiated to address grievances through e-Nivaran and CPGRAM platforms, which serve as pivotal mechanisms for grievance redressal.

“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,” Sehgal said.

Furthermore, a critical initiative has been undertaken to expedite the processing of applications for Nil/Lower TDS or TCS certificates under Section 195/197/206C, with a commitment to resolving them within a month of receipt from April 1, 2024. This streamlined procedure empowers taxpayers to better manage their cash flows and navigate the tax filing process with ease.

“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 added.

Nangia Andersen Tax Leader Aravind Srivatsan also said the guidelines are aimed at ensuring focused efforts on tax collections, dispute resolution, high-value cases, pending information requests, and updating tax data within the technology portal.“The detailed nature of the guidelines highlights the meticulous planning undertaken by the government across various fronts," Srivatsan said.

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,” Srivatsan added.