The Income Tax Department has raised the minimum threshold for filing appeals in tax disputes, streamlining the process for cases brought before the Income Tax Appellate Tribunal (ITAT), high courts, and the Supreme Court. According to a recent circular by the Central Board of Direct Taxes (CBDT), appeals can now be filed only if the disputed tax amount exceeds Rs 60 lakh for ITAT, Rs 2 crore for high courts, and Rs 5 crore for the Supreme Court.

Previously, in 2019, the thresholds were set at Rs 50 lakh for ITAT, Rs 1 crore for high courts, and Rs 2 crore for the Supreme Court. The revised limits are applicable to all cases, including those related to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). Additionally, the CBDT has directed the withdrawal of pending appeals in the Supreme Court, high courts, and tribunals that fall below these new thresholds.

This decision is part of the government's ongoing efforts to manage litigation effectively. The CBDT emphasized that appeals should not be filed solely based on the tax amount involved; instead, they should be evaluated on the merit of each case. The objective is to reduce unnecessary litigation and offer taxpayers more certainty regarding their income tax assessments.