The Union Finance Minister Nirmala Sitharaman stated that the proposed New Income Tax Act, 2025 has raised the  appeal disposal limit of (JCIT) from Rs. 10 lakh to Rs. 25 lakh.

The Finance Minister highlighted that the new framework is designed to be more taxpayer-friendly, reducing reliance on intermediaries such as tax consultants. This move is expected to promote voluntary compliance and enhance transparency in the tax system.

A key feature of the reform is the substantial increase in the monetary thresholds for filing appeals across judicial forums. The threshold for appeals before the Income Tax Appellate Tribunal (ITAT) has been raised from ₹50 lakh to ₹60 lakh. Similarly, the limit for filing appeals before High Courts has been doubled from ₹1 crore to ₹2 crore. In a notable jump, the threshold for approaching the Supreme Court of India has been increased from ₹2 crore to ₹5 crore.

These revisions are expected to reduce litigation burden and allow courts to focus on high-value and complex disputes, thereby improving judicial efficiency.

Further, the government has enhanced the jurisdictional limit for disposal of disputed demand cases by Joint Commissioners of Income Tax (Appeals). The threshold has been increased from Rs. 10 lakh to Rs. 25 lakh, enabling faster resolution of smaller disputes at departmental levels.

The reforms signal the government’s continued push towards ease of doing business and taxpayer convenience, while also aiming to streamline the appellate process and reduce backlog in higher judicial forums.

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