Quick Summary
The Central Board of Direct Taxes (CBDT) has issued Circular No. 05/2025, providing relief to taxpayers facing interest levies under Section 201(1A)(ii) and Section 206C(7) of the Income-tax Act, 1961. The circular allows a waiver of interest on delayed payments of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) caused by technical glitches beyond taxpayers' control. Key Highlights of the Circular Eligibility for Interest Waiver: The waiver applies to cases where TDS/TCS pa
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FAQ :
The CBDT circular (No. 05/2025) allows for the waiver of interest on delayed payments of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) if the delay was caused by technical glitches beyond the taxpayer's control.
Taxpayers are eligible if they initiated their TDS/TCS payments on or before the due date, but the credit to the government was delayed due to technical issues.
The waiver or reduction of interest can be granted by the Chief Commissioner of Income-tax (CCT), Director General of Income-tax (DGIT), or Principal Chief Commissioner of Income-tax (PCCIT) after verifying the technical issue.
Applications for waiver must be filed within one year from the end of the financial year for which the interest is charged.
If you have already paid the interest, the waiver will allow for a refund to be issued to you as the deductor or collector.
Applications for waiver must be disposed of within six months of receipt, after providing the taxpayer an opportunity to be heard.
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