Income Tax Department Establishes Three-Layered Financial Limit for Interest Waiver

Current Context: The Income Tax Department has set up a structured, three-tier system to manage the reduction or waiver of interest on unpaid taxes.

This system categorizes the financial limits of interest waivers into three levels, each overseen by different authorities:

Principal Commissioners: They are authorized to handle cases where the interest amount to be reduced or waived is up to Rs 50 lakh. This means that if the unpaid taxes attract interest within this limit, the Principal Commissioner has the authority to decide on the matter.
Chief Commissioners: For cases where the interest amount falls between Rs 50 lakh and Rs 1.5 crore, the Chief Commissioners are responsible. This middle tier ensures that there is a balanced review for moderately high-interest amounts.
Principal Chief Commissioners: They take charge of cases involving interest amounts exceeding Rs 1.5 crore. This highest tier is designed to ensure that significant financial decisions are managed by the most senior officials, providing a rigorous oversight for large sums.
This tiered approach aims to streamline the process, ensuring that interest waiver or reduction requests are handled efficiently and by appropriately ranked officials, thereby enhancing transparency and accountability within the department.

Question:

1 In the Income Tax Department's three-tier system, which authority is responsible for handling cases where the interest amount to be reduced or waived is up to Rs 50 lakh?