CBDT grants officials authority to waive or reduce interest payments
New Delhi: The income tax department has granted tax officials the authority to waive or reduce the interest payable by taxpayers, provided certain conditions are met, media reports said.
Under Section 220 (2A) of the Income Tax Act, taxpayers who fail to pay the tax specified in a demand notice are required to pay 1% interest per month on the delayed amount, news agency PTI reported.
The Act permits senior tax officials, such as Principal Chief Commissioners (PrCCIT), Chief Commissioners (CCIT), Principal Commissioners (PrCIT), or Commissioners, to either waive or reduce the interest amount due.
A recent circular from the Central Board of Direct Taxes (CBDT), dated November 4, has outlined the monetary thresholds for interest waiver or reduction. A PrCCIT can decide on waivers or reductions for interest amounts exceeding Rs 1.5 crore.
For amounts between Rs 50 lakh and Rs 1.5 crore, a CCIT can make the decision, while PrCITs or Income Tax Commissioners handle waivers for interest up to Rs 50 lakh.
The reduction or waiver is contingent on meeting three specific conditions: the payment must cause or have caused genuine hardship to the taxpayer; the delay was due to circumstances beyond the taxpayer's control; and the taxpayer has cooperated in the assessment or recovery processes.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
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