Circular No. 5/2025 — Waiver of interest u/s 201(1A)/206C(7) for delayed TDS/TCS

Date: 2025-03-28 Status: ACTIVE Category: TDS / TCS Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)

Summary

Guidelines for waiver of interest levied for delayed deposit of TDS/TCS. Specifies conditions for PCIT/CIT to consider waiver applications.

Key Directions

  1. Waiver may be considered where delay was due to genuine hardship or circumstances beyond control.
  2. Application to be filed before PCIT/CIT with supporting evidence.
  3. Partial waiver also permissible based on facts of each case.

Applicability Under IT Act 2025

Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.

Old Section (1961 Act)New Section (2025 Act)Consistent?
201(1A)Needs Review
206C(7)Needs Review

Cross-References

Act Sections

  • None identified

Key Case Law (Circular Supremacy)

  • To be populated — cases where this circular was cited/applied

Full Text

Full text to be added — see raw/circulars/ for PDF when available

Source