Key Points
The Income Tax Department has allowed tax officials to either waive or reduce interest payable by a taxpayer, subject to specified conditions..
Under Section 220 (2A) of the Income Tax Act, if a taxpayer fails to pay the tax amount specified in any demand notice, he/she is liable to pay interest at 1 per cent per month for the period of delay in making the payment...
The power of reduction or waiver of the interest payable under Section 220 (2A) would be subject to satisfaction of three specified conditions payment of such amount has caused or would cause genuine hardship to the assessee; default in interest payment was due to circumstances beyond the control of the assessee; the assessee has cooperated in inquiry relating to assessment or proceeding of the recovery of any amount due from him...
