Income Tax Department gave big relief to taxpayers with some conditions

New Delhi| In a major relief to the taxpayers, the Income Tax Department has allowed the tax authorities to waive or reduce the outstanding interest with certain conditions. Under this, taxpayers falling under this purview can get a concession of more than Rs 1.50 crore.

Under Section 220 (2A) of the Income Tax Act, if a taxpayer fails to pay tax in case of any demand notice, he will have to pay interest at the rate of one per cent every month for the period of delay in making payment, the Income Tax Department said on Tuesday However, the Principal Chief Commissioner or Chief Commissioner or officers of the rank of Principal Commissioner or Commissioner may reduce or waive this outstanding interest amount. This Act empowers these officers to reduce or waive the interest amount payable. Nangia & Co LLP partner Sachin Garg said the move by the Central Board of Direct Taxes is expected to help in expeditious disposal of applications made by taxpayers for interest subvention or reduction.

In a major relief to the taxpayers, the Income Tax Department has allowed the tax authorities to waive or reduce the outstanding interest with certain conditions. Under this, taxpayers falling under this purview can get a concession of more than Rs 1.50 crore.

Under Section 220 (2A) of the Income Tax Act, if a taxpayer fails to pay tax in case of any demand notice, he will have to pay interest at the rate of one per cent every month for the period of delay in making payment, the Income Tax Department said on Tuesday However, the Principal Chief Commissioner or Chief Commissioner or officers of the rank of Principal Commissioner or Commissioner may reduce or waive this outstanding interest amount. This Act empowers these officers to reduce or waive the interest amount payable. Nangia & Co LLP partner Sachin Garg said the move by the Central Board of Direct Taxes is expected to help in expeditious disposal of applications made by taxpayers for interest subvention or reduction.

Sachin Garg said, it is worth noting that under Section 220 of the Income Tax Act, no changes have been made in the conditions which are required to be fulfilled to demand such reduction or exemption in interest. Meanwhile, Rajat Mohan, senior partner, AMRG & Associates, said, this step of the Income Tax Department will promote transparency and efficiency in providing interest relief.

The Central Board of Indirect Taxes and Customs (CBIC) has asked customs officials to disclose the specific nature of ongoing inquiries while issuing letters or summons in export/import fraud cases and complete the investigation within a year. CBIC said, authorities should maintain a balanced approach while investigating tax evasion in import or export of goods. CBIC, in a letter to officials, said all information should be analyzed and available data should be re-examined to reduce the interface with the importer or exporter before starting the investigation.
The Commissioner will be responsible for any intelligence, investigation, completion and approval within the limits of the Commissionerate.