Amendment of section 115TE.
32. In section 115TE of the Income-tax Act, with effect from the 1st day of April, 2023,––
(a) in the marginal heading, for the words “trust or institution”, the words “specified person” shall be substituted;
(b) for the words “trust or the institution” at both the places where they occur, the words “specified person” shall be substituted;
(c) the following Explanation shall be inserted, namely:–
‘Explanation.-For the purposes of this section, “specified person” shall have the same meaning as assigned to in clause (iia) of the Explanation to section 115TD.’.
Notes on Clauses:
Clause 32 seeks to amend section 115TE of the Income-tax Act relating to interest payable for non-payment of tax by trust or institution.
The said section, inter alia, provides that where the principal officer or the trustee of the trust or the institution and the trust or the institution fails to pay the whole or any part of the tax on the accreted income referred to in sub-section (1) of section 115TD, within the time allowed under sub-section (5) of that section, he or it shall be liable to pay simple interest at the rate of one per cent. for every month or part thereof on the amount of such tax for the period beginning on the date immediately after the last date on which such tax was payable and ending with the date on which the tax is actually paid.
It is proposed to amend the said section so as to substitute the reference of the expression “trust or the institution” with the reference of “specified person”.
These amendments will take effect from 1st April, 2023 and will, accordingly, apply in relation to the assessment year 2023-2024 and subsequent assessment years.
