CBDT Sets New Limits for Interest Waiver under IT Act Section 220(2)

The Central Board of Direct Taxes (CBDT) has set new limits for waiving or reducing interest under Section 220(2) of the Income Tax Act. The revised guidelines, effective immediately, aim to provide relief to taxpayers facing financial difficulties. The new limits are based on the amount of outstanding tax dues and the period of delay. For dues up to Rs 1 lakh, the interest waiver can be up to 100% for delays up to one year. For dues between Rs 1 lakh and Rs 10 lakh, the waiver can be up to 75% for delays up to two years. For dues exceeding Rs 10 lakh, the waiver can be up to 50% for delays up to three years. Taxpayers must apply for the waiver, providing detailed reasons for the delay. The CBDT will consider each application on a case-by-case basis, ensuring fair and equitable treatment.