Budget 2024-25 proposes to Hike Monetary Limits for Filing Tax Appeals

The Budget 2024-25 proposes an increase in the monetary limits for filing tax appeals. The new limits for direct tax appeals before the Income Tax Appellate Tribunal (ITAT) will be raised from ₹20 lakhs to ₹50 lakhs for cases involving substantial amounts, and from ₹10 lakhs to ₹25 lakhs for cases involving lesser amounts. Similarly, for appeals before the Commissioner of Income Tax (CIT), the limits will be increased from ₹2 lakhs to ₹5 lakhs. This move aims to streamline the appeals process and reduce the number of cases, facilitating quicker resolution of disputes. The proposal is part of the broader effort to enhance the efficiency of the tax dispute resolution mechanism.