CBDT issues guidelines and monetary limits of the income-tax authorities for reduction or waiver of interest paid or payable u/s 220(2)
Circular No. 15/2024
F. No. 400/08/2024-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
********
New Delhi, 4th November, 2024
Subject: Order under section 119(1) of the Income-tax Act, 1961 fixing monetary limits of the income-tax authorities in respect of reduction or waiver of interest paid or payable under section 220(2) of the Income-tax Act- reg.
Section 220(2) of the Income-tax Act (‘the Act’) deals with the consequences of non-payment of income tax by a taxpayer. As per Section 220(2) of the Act, if a taxpayer fails to pay the amount specified in any notice of demand under section 156 of the Act, she shall be liable to pay simple interest at the rate of I% per month or part of the month for the period of delay in making the payment. Further, section 220(2A) of the Act empowers the Principal Chief Commissioner (Pr.CCIT) or Chief Commissioner (CCIT) or Principal Commissioner (Pr.CIT) or Commissioner (CIT) for reduction or waiver of the amount paid or payable under section 220(2) of the Act in the circumstances specified therein.
2. In accordance with the powers vested with the income-tax authorities specified in section 220(2A) of the Act in respect of reduction or waiver of the interest paid or payable under section 220(2) of the Act,the Central Board of Direct Taxes, for the proper administration of the Act, hereby specifies the following monetary limits as under:
| S. No. | Income Tax Authority | Monetary Limits for reduction or waiver of interest |
| 1. | Pr. CIT/ CIT | up to Rs. 50 lakhs |
| 2. | CCIT/DGIT | above Rs. 50 lakhs to Rs. 1.5 crore |
| 3. | Pr. CCIT | above Rs. 1.5 crore |
3. The powers of reduction or waiver of the interest paid or payable under section 220(2) of the Act in respect of any income-tax authority shall continue to be subject to satisfaction of all the following conditions specified under section 220(2A) of the Act-
(i) payment of such amount has caused or would cause genuine hardship to the assessee ;
(ii) default in the payment of the amount on which interest has been paid or was payable under the said sub-section was due to circumstances beyond the control of the assessee; and
(iii) the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.
4. The above shall come into effect from the date of issue of this Circular. Hindi version shall follow.
(Rubal Singh)
Deputy Secretary (IT-Budget),
CBDT, New Delhi
Download CBDT Circular No. 15/2024 Click here >>
Mere CBDT Instructions cannot absolve individuals of their obligation to explain the source and nature of their gold holdings, even…
Empanelment of General Observers for ICSI Examinations December 2026 ICSI has invited interested members to enroll as General Observers for…
ITAT answers some important and inter-related issues relating to deduction u/s 80IA In a recent judgment, ITAT has dealt with…
Carry forward of loss can not be denied for belated return, it is only the set off in subsequent year…
Where sales are duly recorded in books and VAT returns, to treat it bogus sales, AO must bringing cogent adverse…
Expenses to celebrate Diwali with staff creates a goodwill and, therefore amounts to expenses incurred for the purpose of business…