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CBDT Circular No. 05/2025: Waiver of Interest on TDS & TCS Delays Due to Technical Glitches

CBDT Circular No. 05/2025 on Section 201(1A)(ii) and 206C(7)

Circular No. 05/2025 has been issued by the Central Board of Direct Taxes (CBDT) to provide relief to taxpayers facing charges under Section 201(1A)(ii) and Section 206C(7) of the Income-tax Act, 1961.

The circular allows for an exemption from interest on late payments of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) that resulted from technical glitches beyond the taxpayers’ control.

CBDT Circular No.05/2025 Highlights

Interest Waiver Eligibility 

  • The same exemption applies to the cases where the TDS/TCS payments were started on or before the deadline, though the credit to the Central Government was delayed due to technical issues.
  • Through the system failures, the taxpayers that consequences in the automatic interest regulations u/s 201(1A)(ii) or 206C(7) can ask for relief.

Authority to provide waivers:

The exemption or reduction of interest will be granted via the Chief Commissioner of Income-tax (CCT), Director General of Income-tax (DGIT), or Principal Chief Commissioner of Income-tax (PCCIT) after affirming the technical problem.

Application Procedure & Time Period

  • From the finish of the fiscal year for which the interest is levied, applications are to be filed within 1 year.
  • The respective authority is to dispose of applications within 6 months of receipt, after furnishing the taxpayer a chance to be heard. 

Read Also: List of Cash Transactions Not Eligible For I-T Exemptions

Refund of Paid Interest: The exemption will permit a refund to the deductor/collector if the interest has been paid before.

Order finality: The decision made by the CCT, DGIT, or PCCIT will be final and non-appealable.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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