Circular no. 5/2025, 28-03-2025
The Central Board of Direct Taxes (CBDT) has received representations that taxpayers have encountered technical glitches while making payments of taxes deducted at source (TDS) and taxes collected at source (TCS) to the credit of the Central Government. On account of such glitches, while the payment is initiated by the taxpayers, the actual credit to the Central Government is done after the due date.
In response, the CBDT has exercised its powers under section 119 and directed the Chief Commissioner of Income-tax (CCIT) or Director-General of Income-tax (DGIT) to reduce or waive interest charged under section 201(1A)(ii)/206C(7) if the following conditions are satisfied:
a) The payment is initiated by the taxpayers/deductors/collectors, and the amounts are debited from their bank accounts on or before the due date and
b) The tax could not be credited to the Central Government before the due date because of technical problems beyond the control of the taxpayer/deductor/collector.
Interest under section 201(1A)(ii)/206C(7) can be waived and refunded if already paid, subject to a waiver order. Waiver applications are only acceptd within one year from the end of the relevant financial year.
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