Income Tax
The CBDT, vide Order F. No. 275/92/2024-IT(Budget) dated 28th March 2025, has allowed waiver or reduction of interest under sections 201(1A)(ii) and 206C(7) of the Income-tax Act in specific cases. This relief applies where TDS/TCS payments were initiated and debited from taxpayers’ accounts on or before the due date, but credit to the Central Government was delayed due to technical glitches beyond their control.
The concerned CCIT, DGIT, or PCCIT may grant such waiver after verifying the technical issue with the bank or Directorate of Systems and providing an opportunity of being heard. Paid interest may also be refunded if waiver is approved. Applications must be disposed of within six months, and the authority’s decision shall be final.
[Circular No. 05/2025 dated 28.03.2025]
