In an effort to reduce litigations, the finance ministry has increased the limit for filing tax appeals in the Supreme Court to Rs 2 crore from Rs 1 crore earlier.
In a circular issued on Thursday, the Central Board of Direct Taxes (CBDT) has increased the monetary threshold to file appeals in the tax tribunal, High Court and Supreme Court.
With this, the cases with an overall tax liability of Rs 50 lakh, up from Rs 20 lakh earlier, can be appealed before the Income Appellate Tax Tribunal (ITAT).
Similarly, the threshold for filing an appeal before the High Court has been increased to Rs 1 crore from Rs 50 lakh earlier.
This is the second time in the last one year that the government has increased the threshold limit for filing tax appeals.
Earlier too, the government’s had double the threshold limit for filing tax appeals in various courts to reduce tax litigations.