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CBDT new guidelines for I-T interest waiver
The Morning Standard
|November 06, 2024
THE Central Board of Direct Taxes (CBDT) on Tuesday announced new guidelines aimed at providing relief to taxpayers regarding the waiver and reduction of interest payable under Section 220(2) of the Income-tax Act.
As per the circular, tax officials at different levels will have authority to either waive off or reduce interest payable by a taxpayer, subject to conditions. The circular is effective immediately. As per the Income Tax Act, taxpayers who fail to pay the amount specified in a notice of demand will incur simple interest at a rate of 1% per month for any delay in payment. However, the CBDT has established specific monetary limits for income-tax authorities regarding the granting of waivers or reductions on this interest.
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