The Ministry of Finance (MoF) on November 04, 2024, issued an order under section 119(1) of the Income Tax Act, 1961, for fixing monetary limits of the income tax authorities in respect of reduction or waiver of interest paid or payable.
The following has been stated namely: -
• It states that the Pr.CIT or CIT can waive interest for amounts up to ₹50 lakh, while the CCIT or DGIT can handle amounts exceeding ₹50 lakh but not exceeding ₹1.5 crore. The Pr.CCIT shall have the authority for amounts above ₹1.5 crore.
• It further states that the power to reduce or waive interest under section 220(2) is subject to conditions: genuine hardship, default due to circumstances beyond the assessee's control, and cooperation in the assessment or recovery proceedings.
• This shall come into force from November 04, 2024.
[Circular no. – 15/2024]
