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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 

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

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.

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