CBDT Specifies Monetary Limits for Reduction or Waiver of Interest Paid or Payable Under Section 220(2)
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- Last Updated on 6 November, 2024
Circular no. 15/2024, dated 04-11-2024
The Central Board of Direct Taxes (CBDT) has issued a notification specifying the monetary limits for the authorities for reduction or waiver of interest under section 220(2) of the Income-tax Act, 1961. Section 220(2) of the Income-tax Act provides that if a taxpayer fails to pay the amount mentioned in the notice of demand under section 156 of the Act, she shall be liable to pay simple interest at the rate of 1% per month for the period of delay in making the payment.
Further, section 220(2A) empowers the Principal Chief Commissioner (Pr. CCIT) or Chief Commissioner (CCIT) or Principal Commissioner (Pr. CIT) or Commissioner (CIT) for reduction or waiver of the amount paid or payable under section 220(2) in the circumstances specified therein.
The Board has specified the following monetary limits for the authorities to reduce or waive the interest paid or payable under section 220(2):
- Principal Commissioner of Income Tax (Pr. CIT) / Commissioner of Income Tax (CIT) can approve reductions or waivers up to Rs. 50 lakhs.
- Chief Commissioner of Income Tax (CCIT) / Director General of Income Tax (DGIT) can approve amounts above Rs. 50 lakhs and up to Rs. 1.5 crore.
- Principal Chief Commissioner of Income Tax (Pr. CCIT) can approve reductions or waivers for amounts exceeding Rs. 1.5 crore.
Click Here To Read The Full Circular
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