In a move that could bring relief to taxpayers and reduce litigation, the Central Board of Direct Taxes has hiked the limits for filing cases against taxpayers in courts.

Appeals against taxpayers can be filed before Income Tax Appellate Tribunal (ITAT) only when the tax effect is Rs 3 lakh and above. The earlier limit was Rs 2 lakh.

The CBDT has also increased the limit for filing cases against taxpayers in High Courts and Supreme Court. For High Court, the tax effect is Rs 10 lakh against Rs 4 lakh previously. For Supreme Court, it is Rs 25 lakh against Rs 10 lakh earlier.

The CBDT has also relaxed the Tax Deducted at Source matching criteria to speed up refunds. The I-T Department plans to issue all refunds relating to tax returns filed up to the current fiscal this year itself.