Amendment of section 220.
55. In section 220 of the Income-tax Act, after sub-section (2B), the following sub-section shall be inserted with effect from the 1st day of June, 2015, namely:-
“(2C) Notwithstanding anything contained in sub-section (2), where interest is charged under sub-section (7) of section 206C on the amount of tax specified in the intimation issued under sub-section (1) of section 206CB for any period, then, no interest shall be charged under subsection (2) on the same amount for the same period.”.
Notes on Clauses:
Clause 55 of the Bill seeks to amend section 220 of the Income tax Act relating to when tax payable and when assessee deemed in default.
It is proposed to insert sub-section (2C) in the aforesaid section so as to provide that notwithstanding anything contained in subsection (2) of section 220, where interest is charged under subsection (7) of section 206C on the amount of tax specified in the intimation issued under sub-section (1) of section 206CB for any period, then, no interest shall be charged under the said subsection (2) on the same amount for the same period.
This amendment will take effect from 1st June, 2015.
