TDS Return demand interest us 220(2) waive off.

If the required amount was paid within the specified time limit as per the demand notice, the interest u/s. 220(2) would not have been charged.

But if it was paid later than the time limit, then interest is chargeable.

Anyway, Your Jurisdictional ITO has authority to reduce the interest or nullify it, based on your appeal.

You are welcome..