Income Tax Department Grants Major Relief to Taxpayers with Conditions
Tax authorities now permitted to reduce or waive interest on unpaid dues
New Delhi: The Income Tax Department has provided significant relief to taxpayers by allowing tax authorities to waive or reduce the interest on pending dues under certain conditions, aiming to ease financial burdens on eligible taxpayers.
Section 220(2A) Relief Benefits:
According to Section 220(2A) of the Income Tax Act, if a taxpayer fails to pay dues within the stipulated time frame after receiving a demand notice, they are charged a 1% monthly interest on the outstanding amount. The new relief allows for an exemption from this interest, subject to specific eligibility criteria.
Potential Savings up to ₹1.50 Crore:
Taxpayers qualifying under these conditions can receive waivers on outstanding interest up to ₹1.50 crore. This move aims to provide financial relief and improve compliance among taxpayers.