Site iconSite icon SAG Infotech Official Tax Blog Upto 20% Off on Tax Software for You

CBDT Allows Tax Officials to Reduce or Waive Interest on Delayed Payments, Subject to Conditions

CBDT Circular No. 15/2024: Regarding Monetary Limits for Waivers

An updated guideline has been furnished by the income tax department to either exempt or lessen the interest that the taxpayer holds towards the late payments given a specific condition is satisfied.

The same adjustment has been proposed to facilitate the relief process, particularly for taxpayers who are facing financial difficulties.

What Says the Law for Taxpayers?

The assesses u/s 220(2A) of the Income Tax Act, who forget the due date to pay the demand notice amount are levied a 1% monthly interest on the overdue amount.

Senior tax officials in a matter can approve an exemption or reduction of the same interest if specific needs are fulfilled.

Who Can Be Authorised Waivers or Tax Reductions?

A circular has been furnished dated 4th November by the Central Board of Direct Taxes (CBDT) that cited the financial limits for exempting or reducing based on the rank of the tax official-

Relief Conditions

Taxpayers must meet the below conditions to be entitled to a waiver or reduction in interest-

Tax experts cited that the same move is anticipated to speed up the processing of exemption or reduction applications since tax officers have a framework for making decisions.

Read Also: CBDT Rolls Out New Guidelines to Simplify Compounding of Income Tax Offences

Tax expert stresses the same structure surges clarity and efficiency by authorizing distinct levels of tax officials to make decisions more faster and more consistent.

Another tax expert mentioned that placing such fiscal limits allows the officials to handle the interest relief cases in a perfect way which assures the correct forecast and support for the assesses who are facing financial hardships.

Exit mobile version