Central Board of Direct Taxes (CBDT) has issued an order under Section 119 of the Income-tax Act, 1961, granting a waiver or reduction of interest levied under Sections 201(1A)(ii) and 206C(7) in specific cases where taxpayers faced technical glitches while making payments of tax deducted at source (TDS) or tax collected at source (TCS).

Under the Income-tax Act, interest is levied when taxpayers or collectors fail to deposit TDS or TCS within the stipulated time. However, several taxpayers reported instances where payments were initiated on or before the due date, and amounts were debited from their bank accounts, but the credit to the Central Government was delayed due to technical issues.

Key Provisions of the Circular:

Eligibility for Waiver:

1. Payments initiated by taxpayers/deductors/collectors on or before the due date.
2. Delay in credit to the Central Government was due to technical glitches beyond the taxpayer’s control.

Process:

• • Taxpayers must apply for a waiver.
  • The authority will verify the technical issue with the bank or Directorate of Systems.
  • A “speaking order” will be passed after giving the applicant an opportunity to be heard.

Refunds: If the interest has already been paid, a waiver may result in a refund.

Application Timeline: Applications for waiver must be filed within one year from the end of the relevant financial year.

Disposal of Application: Authorities must resolve applications within six months from the end of the month in which the application is received.

Finality of Order: The order passed by the CCIT, DGIT, or PrCCIT is final; no further petitions will be entertained by the Board.

The circular aims to provide relief to taxpayers who acted in good faith but were hindered by technical problems beyond their control.