Tax Officers Granted Permission to Waive Interest for Taxpayers

Tax Officers Granted Permission to Waive Interest for Taxpayers

New Delhi: The Income Tax Department has allowed tax officers to reduce or waive interest on outstanding dues for taxpayers under certain conditions. According to the Income Tax Act, if a taxpayer fails to pay the amount specified in a demand notice, they are required to pay interest at a rate of 1% per month for the delay in payment.
The new guidelines authorize senior officers, including Principal Chief Commissioners (PrCCIT), Chief Commissioners (CCIT), Principal Commissioners (PrCIT), and Commissioners of similar rank, to waive or reduce the interest amount for taxpayers. Specifically, PrCCIT officers can decide on interest waivers or reductions for arrears exceeding ₹1.5 crore.
This measure aims to provide relief to taxpayers facing financial challenges by giving officers the authority to offer concessions on accumulated interest dues.