Section 85 - Amendment of section 220 - Direct Tax Laws (Amendment) Act, 1987

85 Amendment of section 220. In section 220 of the Income-tax Act,- (a) in sub-section (1), for the words thirty-five days , wherever they occur, the words thirty days shall be substituted; (b) in sub-section (2),- (i) for the words, brackets and figures fifteen per cent. per annum from the day commencing after the end of the period mentioned in sub-section (1) , the words, brackets and figure one and one-half per cont. for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid shall be substituted; (ii) in the proviso, after the word and figures section 264 , the words, brackets, figures and letter or an order of the Settlement Commission under sub-section (4) of section 245D shall be inserted; (iii) after the proviso, the following proviso shall be inserted, namely :- Provided further that in respect of any period commencing on or before the 31st day of March, 1989 and ending after that date, such interest shall, in respect of so much of such period as falls after that date, be calculated at the rate of one and one-half per cent. for every month or part of a month. .