CBDT vide Circular No. 8/2025 dated 01 July 2025 has provided a clarification in respect of waiver of interest levied under section 201(1A)(ii)/206C(7) (i.e. interest in relation to delay in deposit of TDS/TCS), in pursuance of Circular No. 05/2025 dated 28 March 2025. The said Circular was related to waiver of interest levied due to delay in TDS/TCS depositions for which the payments were initiated and amounts were debited on or before the due date from the bank accounts of the deductor/collector, however the same was not credited to the account of the Central Government before the due date, due to technical glitches.
Circular No. 8/2025 clarifies that the order for waiver can be passed only after the date of Circular No. 05/2025, however such waiver may relate to interest levied prior to the date of Circular, provided the waiver applications are filed within the timeline of one year from the end of the financial year in which the interest under section 201(1A)(ii)/206C(7) was levied.
This has been explained through an example. For instance, application in relation to interest levied in FY 2023-24 can be filed till 31 March 2025, i.e. one year from 31 March 2024 and such application may be entertained for waiver.
No comments:
Post a Comment