New Student Offer Use Code - HELLO

Join Here

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

Published on November 07, 2024
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.
Income Tax Department Establishes Three-Layered Financial Limit for Interest Waiver
  • 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?

  • A) Chief Commissioner
  • B) Principal Chief Commissioner
  • C) Commissioner of Income Tax
  • D) Principal Commissioner
ebook store

About Me

Ramandeep Singh

Ramandeep Singh - Educator

I'm Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and over 5000 successful selections, I understand the path to success firsthand, having transitioned from Dena Bank and SBI. I'm passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu