CBDT further clarifies on waiver of interest on failure to collect or pay TCS

CBDT further clarifies circular on waiver of interest on account of failure to collect or pay the collected tax to the credit of the Central Government by the collector. 

F. No. 275/92/2024-IT (B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

Circular No. 8/2025

Subject: Clarification regarding CBDT’s Circular No. 5/2025 dated 28.03.2025 for waiver on levy of interest under section 201(1A)(ii)/ 206C(7) of the Income-tax Act, 1961 in specific cases.

In respect of Circular No. 5/2025 dated 28.03.2025, representations have been received from field authorities to clarify whether the prescribed authority empowered to pass waiver orders under this circular is deemed to be effective from the date of issuance of the circular or whether waiver applications are to be entertained only in cases where the interest under section 201 (lA)(ii)/ 206C(7) of the Income-tax Act, 1961 (“the Act”) is charged on or after the date of issuance of the said circular.

2. The matter has been examined and it is hereby clarified that:

(i) The prescribed authority (i.e. CCIT/ DGIT/ Pr.CCIT) is empowered to pass order for waiver after the date of issue of the said Circular.

(ii) As mentioned in Para 6 of the said Circular, applications for waiver of interest can be entertained within one year from the end of the financial year for which the interest is charged. For instance, if the interest charged pertains to FY 2023-24, the application for waiver of such interest can be filed by 31 .03.2025 i.e. one year from the end of FY 2023-24.

(iii) Further, it is also clarified that waiver applications can be entertained for interest u/s 201(1A)(ii)/ 206C(7) of the Act charged even before the issuance of the said Circular, subject to (ii) above.

(Rubal Singh)
Deputy Secretary, IT-Budget
CBDT

Download CBDT Circular 08/2025 Click Here >>

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