TaxSavvy

ITR

Very old small demand that may be waived

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

Find

CBDT ordered remission of small old demands in February 2024: entries up to ₹25,000 for years up to AY 2010-11 and up to ₹10,000 for AY 2011-12 to 2015-16, with a cap of ₹1 lakh per taxpayer. Such entries should not be used to adjust your refund.

Provisions

Sec 245, Income-tax Act 1961 (now Sec 438, Income-tax Act 2025); CBDT Order under Sec 119, Income-tax Act 1961, dated 13 February 2024 (remission of petty old demands)

Analysis

If your old demand falls within these limits, it should have been extinguished. Example: ₹6,000 outstanding for AY 2009-10 is within the ₹25,000 limit, so it should not reduce your refund. In the response, disagree and mention the remission order, and ask the jurisdictional officer to close the entry. Interest or fees on such entries were also covered, but demands from search cases and certain other exclusions were not, so check the order.

Close

  1. Check the year and amount of each old demand
  2. Compare with the remission limits for that year band
  3. Respond: Disagree, citing the CBDT order of 13 February 2024
  4. Ask the jurisdictional officer to remove the entry
  5. Keep checking the outstanding demand list until it clears

The remission did not cover every case; check the exclusions before relying on it.

Connect now

A Savvy replies in minutes.

Fixed price before you pay. Your Savvy is paid only after you accept the work.

Connect nowPay and start: Refund set-off, Sec 245 (now 438), ₹2,499

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask