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Taxation Central Ministry of Finance Income Tax Act, 1961

CBDT notifies Monetary Limits for Interest Waiver under Section 220(2)

04-Nov-2024 | Circular No. 15/2024

Central Board of Direct Taxes (CBDT) has issued a Circular notifying the Monetary Limits for Interest Waiver under Section 220(2) of the Income Tax Act, 1961.

This section imposes interest on taxpayers for delayed payment of tax as per demand notices issued under Section 156, at a rate of 1 percent per month. However, under Section 220(2A), certain authorities are empowered to reduce or waive this interest if specific conditions are met. According to the circular, the Principal Commissioner of Income Tax (Pr.CIT) or Commissioner of Income Tax (CIT) can waive interest for amounts up to Rs. 50 lakh, while the Chief Commissioner of Income Tax (CCIT) or Director General of Income Tax (DGIT) can handle amounts exceeding Rs. 50 lakh but not exceeding ?1.5 crore. The Principal Chief Commissioner of Income Tax (Pr.CCIT) has authority for amounts above Rs. 1.5 crore.

For more details, please refer to the official document.

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