Notification/Circular No. –Circular No. 13/2025 dated September 19, 2025
Applicable Act/Rule: Income-tax Act, 1961
Certain taxpayers were incorrectly allowed rebate under section 87A on incomes chargeable at special rates. Rectification of such returns results in raised demands, and delayed payment of these demands attracts interest under section 220(2).
CBDT, exercising powers under section 119, has directed that interest under section 220(2) shall be waived for such demands if payment is made on or before December 31, 2025. Failure to pay by this date will attract interest under section 220(2) from the day following the end of the period specified in subsection (1) of section 220.
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