CBDT sets New Monetary Limits for Waiving or Reducing Interest on Pending Dues u/s 220(2) of Income Tax

The Central Board of Direct Taxes (CBDT) has issued new monetary limits for waiving or reducing interest on pending dues under Section 220(2) of the Income Tax Act. The revised limits aim to provide relief to taxpayers facing financial difficulties. 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. This initiative aims to alleviate the financial burden on taxpayers and promote timely compliance.