Tax Waiver Relief: New Measures for Reducing Interest Burden

The income tax department now permits officials to waive or reduce interest payable on unpaid taxes under specific conditions outlined in Section 220(2A) of the Income Tax Act. This empowers appointed tax officers to decide on waivers based on threshold amounts, promoting quick resolution and transparency.

The income tax department has introduced measures allowing officials to waive or reduce interest payable on outstanding taxes, provided certain conditions are met. This development aims to address taxpayer concerns and facilitate smoother financial operations.

According to the Income Tax Act Section 220 (2A), taxpayers failing to settle their tax dues are typically subject to interest charges of 1 percent per month. However, appointed principal-level officers now have the authority to lessen the interest burden based on pre-specified financial thresholds.

Experts applaud this decision, noting that the move enhances transparency and efficiency in handling such cases. By clearly delineating responsibilities among tax officials, the decision process is streamlined, reducing bureaucratic delays and simplifying outcomes for taxpayers.

(With inputs from agencies.)