|
The Central Board of Direct Taxes (CBDT) has permitted tax officers to waive or reduce the interest payable on tax payments by assessees, subject to specific conditions, an official release said.
As per a circular, dated November 4, a Principal Chief Commissioner of Income Tax (PrCCIT) can decide on reducing or waiving interest due of over Rs 1.5 crore. For interest due above Rs 50 lakh and below Rs 1.5 crore, Chief Commissioner of Income Tax (CCIT) rank officers will decide on the waiver/reduction, while Principal Commissioner of Income Tax (PrCIT) or Income Tax Commissioners can decide on interest due up to Rs 50 lakh.
Under Section 220 (2A) of the Income Tax (I-T) Act, if a taxpayer fails to pay the tax amount specified in any demand notice, he/she is liable to pay interest at 1% per month for the period of delay in making the payment. The Act also empowers the above mentioned rank officers to either reduce or waive the amount interest due to be paid.
As per the circular, the reduction/waiver of the interest payable would be subject to satisfaction of three specified conditions — payment of such amount has caused or would cause genuine hardship to the assessee; default in interest payment was due to circumstances beyond the control of the assessee; the assessee has cooperated in inquiry relating to assessment or proceeding of the recovery of any amount due from him.
|
