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Taxation Central Ministry of Finance Income Tax Act, 1961

CBDT (Income Tax) Issues Notification on Waiver of Interest for Late Payment of Tax Demand

19-Sep-2025 | Circular No. 13 /2025 :

Central Board of Direct Taxes (CBDT) has issued a notification regarding the waiver of interest payable under Section 220(2) of the Income-tax Act, 1961, for delayed payment of tax demand.

By virtue of this notification, it has been clarified that interest payable due to late payment of demand under Section 220(2) shall be waived if the taxpayer pays the corrected tax demand on or before 31st December 2025.

Additionally, if the taxpayer fails to make the payment by 31st December 2025, interest under Section 220(2) shall be levied from the day immediately following the expiry of the time allowed under Section 220(1) of the Act.

For more information, kindly refer to the attached document.

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