The ministry of finance gave a big relief for small tax payers. Finance ministry has decided to raise the threshold monetary limit for tax department to file appeals in tribunals and courts from Rs 10 lakh to Rs 20 lakh. Union Finance Minister Shri Piyush Goyal said that the hike in the threshold would result in withdrawal of 41 per cent of cases from Income Tax tribunals and various courts. These cases involve litigation over recovery of Rs 5,600 crore. The decision is likely to benefit small taxpayers facing litigations in tribunals and courts. The higher limit would mean that 34 per cent of the tax cases filed in Income Tax Appellate Tribunal will be withdrawn. About 48 percent of the cases in High Courts would be withdrawn. 54 percent of cases in the Supreme Court will be withdrawn. It is the big relief for small tax payers any central government ever taken step.

Shri Piyush Goyal said that the big relief small tax payers would lead to an environment of trust between income tax departments and tax payers. Shri Piyush Goyal said that move was aimed at creating trust in the tax administration and give relief to small, honest and mid-sized Indian taxpayers. The decision is based on the premise that the cost of litigation is sometimes more than the recovery sought, he said.

Shri Piyush Goyal said that the Income tax department could file appeals in Income Tax Appellate Tribunal/Customs, Excise and Service Tax Appellate Tribunal only if the tax amount involved is Rs 20 lakh or more, up from Rs 10 lakh at present. Appeals would be filed in High Courts if the tax amount involved in litigation is Rs 50 lakh, up from Rs 20 lakh at present. For appeals in Supreme Court, the threshold limit has been hiked to Rs 1 crore, from Rs 25 lakh at present. Union finance minister shri Piyush Goyal said only cases where substantial point of law is involved will be appealed against.