Quick Summary
The Central Board of Direct Taxes (CBDT) issued Circular No. 15/2024 on November 4, 2024, defining monetary thresholds for income tax authorities regarding the waiver or reduction of interest under Section 220(2) of the Income-tax Act, 1961. This section pertains to the interest payable due to non-p
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FAQ :
Section 220(2) of the Income-tax Act, 1961, deals with the interest payable on demanded tax that has not been paid following a notice issued under Section 156. This interest accrues at 1% per month or part thereof until payment.
The circular sets new monetary thresholds for income tax authorities to waive or reduce interest under Section 220(2) of the Income-tax Act, aiming to streamline the process.
Principal Commissioners/Commissioners can waive interest up to £50 lakh. Chief Commissioners/Director Generals of Income Tax can handle amounts between £50 lakh and £1.5 crore. Principal Chief Commissioners have jurisdiction over cases exceeding £1.5 crore.
An interest waiver is contingent upon the payment causing genuine hardship to the assessee, the default occurring due to circumstances beyond the assessee's control, and the taxpayer cooperating with authorities.
The circular is effective from the date of its issue, which was November 4, 2024.
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