Calculation of interest and terms: "or otherwise" and "in different manner, in another way, or in other ways" - Income Tax - 628/CBDT

INSTRUCTION NO. 628/CBDT Dated : October 19, 1973 Section(s) Referred: 215 Statute: Income - Tax Act, 1961 A question has been raised as to the exact meaning of the word tax paid "otherwise" appearing in section 215(2) of the I.T.Act. Sub-sec.2 of section 215 provides that where before the date of completion of a regular assessment, tax is paid by the assessee u/s.140A or otherwise, interest shall be calculated in accordance with the provisions of sec.215(1) upto the date on which such tax is so paid and thereafter interest shall be calculated on the amount by which the tax so paid falls short of the assessed tax. 2. The matter has been examined by the Board in consultation with the Ministry of Law. The Board have been advised that the term "or otherwise" is wide enough to cover any other form of payment of income tax which means "in different manner, in another way, or in other ways". Thus tax paid in any way or ways other than u/s.215(2) even though such payment may not, strictly speaking, be categorised as tax paid on self-assessment. As such any amount paid by the assessee not being advance tax or tax on self-assessment before the completion of regular assessment has to be taken into account while calculating interest u/s.215. To this extent, Board's Instructions regarding levy of interest u/s.215 in Instruction No.363(F.No.404/276/71-ITCC), dated 23-12-71 may be treated as modified. 3. These instructions may please be brought to the notice of all the officers working in each charge.