FM Sitharaman directs CBDT to withdraw all low-value tax cases within 3 months
Union finance minister Nirmala Sitharaman has directed the Central Board of Direct Taxes (CBDT) to identify and withdraw all the departmental tax appeals that fall below the revised monetary thresholds announced in the Union Budget 2024–25, setting a firm deadline of three months. The move is part of a broader effort to reduce litigation, ease taxpayer burden, and strengthen service delivery through timely resolution.
According to official estimates, 4,605 appeals were withdrawn following the threshold revision in 2024, and in 3,120 cases, no appeals were filed as they fell below the updated limits.
Under Budget 2024–25, the monetary thresholds for filing departmental appeals were revised upwards. For cases before the Income Tax Appellate Tribunal (ITAT), the threshold was increased from Rs 50 lakh to Rs 60 lakh; for High Courts, from Rs 1 crore to Rs 2 crore; and for the Supreme Court, from Rs 2 crore to Rs 5 crore.
These revised limits resulted in the withdrawal of cases from ITAT, High Courts and the Supreme Court, allowing courts to focus on higher-value disputes.
“Good policies alone are not enough – what matters is timely execution,” Sitharaman said while addressing officials at the 166th Income Tax Day on July 24. She urged the CBDT to accelerate disposal of disputed tax demands, ensure timely processing of refunds, and conduct region-wise performance reviews. She also directed the department to analyse the causes of litigation pendency and adopt sustainable strategies to resolve taxpayer grievances.
