Income Tax Waiver Limits: CBDT Clarifies Rs 1 Lakh Cap, Exempts Future Interest The Central Board of Direct Taxes (CBDT) has established a maximum ceiling limit of Rs 1 lakh for the waiver of eligible income tax demands. However, an exclusion from this calculation, as outlined in the CBDT's order dated February 13, 2024, is future interest, which will not be considered when determining the overall amount of income tax demand. CBDT said, "Consequent to the aforesaid remission and extinguishment of entries of outstanding demand, there shall not be requirement of calculation of interest on account of delay in payment of demand under sub-section (2) of section 220 of the Income-tax Act, 1961 or corresponding provisions of Wealth-tax Act, 1957 and Gift-tax Act, 1958 and therefore, the same shall not be considered for the purpose of determining the ceiling of Rs 1,00,000 (Rupees one lakh)."