Quick Summary
The Central Board of Direct Taxes (CBDT) has issued Circular No. 8/2025 dated July 1, 2025, to clarify key concerns raised by field officers regarding the waiver of interest under Sections 201(1A)(ii) and 206C(7) of the Income-tax Act, 1961, as initially addressed in its earlier Circular No. 5/2025 dated March 28, 2025. The clarification responds to queries on whether the authority to grant waivers is effective retrospectively or only from the date of the circular's issuance. The CBDT has now c
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FAQ :
The circular clarifies concerns regarding the waiver of interest under Sections 201(1A)(ii) and 206C(7) of the Income-tax Act, specifically addressing the timing and eligibility of waiver applications.
The authority to grant waivers rests with Chief Commissioners of Income Tax (CCIT), Director Generals of Income Tax (DGIT), or Principal Chief Commissioners (Pr.CCIT).
Applications must be filed within one year from the end of the financial year in which the interest was charged. For instance, interest for FY 2023-24 requires application by March 31, 2025.
Yes, applications for interest charged before March 28, 2025, are permissible, provided they are submitted within the stipulated one-year window from the end of the relevant financial year.
This clarification is expected to provide relief to taxpayers and deductors who have defaulted on TDS or TCS payments and are liable for interest, aiming to simplify compliance.
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