If you had paid TDS or TCS on time, but due to technical difficulties it was deposited late in the government account, then now you will not have to worry about paying interest. The Central Board of Direct Taxes (CBDT) has taken a big decision in this matter and has issued an order to waive interest in such cases.
What is the whole matter?
Recently, many taxpayers had complained that they had paid TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) on time, but due to technical glitches this amount was deposited late in the government account. Due to this, the Income Tax Department imposed interest on them under sections 201(1A)(ii) and 206C(7) of the Income Tax Act.
Understanding this situation, CBDT has decided that if the taxpayer, deductor or collector had made the payment within the stipulated time limit, but due to technical reasons it was deposited late in the government account, then the interest charged on it will be waived.
Also read: Major changes in TDS and TCS rules from April 1: Here’s all you need to know
To implement this decision, the Chief Commissioner of Income Tax (CCIT), Director General of Income Tax (DGIT) or Principal Chief Commissioner of Income Tax (PrCCIT) have been empowered to take a decision on interest waiver in such cases.
What to do if interest has already been paid?
If a taxpayer has already paid the interest, then he can apply for its refund. However, CBDT has clarified that the application for interest waiver can be made only within one year from the end of the same financial year.
Also read: New Income Tax Rules Highlights: Tax relief, UPI deactivation – Here’s what all changes from today
Who will get the most relief?
This decision will benefit those taxpayers the most, who were facing interest notices due to technical flaws despite making timely payment. Now they will be able to avoid unnecessary financial burden and will be able to deposit their taxes under the correct procedure.
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