CBDT's Latest: Interest Waivers for Past TDS/TCS Delays Are Now Confirmed!

Facing interest charges on delayed TDS/TCS payments because of technical problems? Good news is here! Following Circular No. 5/2025, the CBDT has released Circular No. 8/2025 (dated 01.07.2025) to clearly explain important details of its interest waiver scheme.Click Here

Field authorities had questions. The CBDT provided clear answers:

When Can Authorities Waive Interest?

The prescribed authorities (CCIT, DGIT, Pr.CCIT) can issue interest waiver orders starting March 28, 2025. This date marks when Circular No. 5/2025 was released.

Can I Apply for Interest Charged Before March 28, 2025?

YES, absolutely! This is the key clarification. Waiver applications can be accepted for interest charged under Section 201(1A)(ii) or 206C(7), even if it was imposed before Circular No. 5/2025.

The Key Condition Remains:

All applications must still meet the one-year filing deadline from the end of the financial year when the interest was charged. For example, if the interest relates to FY 2023-24, you can apply until March 31, 2025.

In essence, this circular confirms that the waiver scheme can apply retroactively. This ensures that genuine cases of technical payment failures in the past (within the one-year window) can also seek relief.

Action: If you have been charged interest due to technical issues, check your eligibility and apply within the timeframe!