TMI BlogInterest for deferment of advance taxX X X X Extracts X X X X X X X X Extracts X X X X ..... assessee on the current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent. on the amount of the shortfall from the tax due on the returned income: Provided that if the advance tax paid by the assessee on the current income, on or before the 15th day of June or the 15th day of September, is not less than twelve per cent. or, as the case may be, thirty-six per cent. of the tax due on the returned income, then, the assessee shall not be liable to pay any interest on the amount of the shortfall on those dates;] ( b ) 14 [ 19 [ an assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be ] who is liable to pay advance tax under section 208 has failed to pay such tax or the advance tax paid by the assessee on its current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent. on the amount of the shortfall from the tax due on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the 1st day of April immediately following the financial year in which the advance tax is paid or payable, as reduced by the amount of,- (i) any tax deductible or collectible at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income; 23 [ (ia) any relief of tax allowed under section 89; ] (ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India; (iii) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section; (iv) any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and (v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA 12 [ or section 115JD. ] ] 26 [ Explanation 2. For the purposes of this sub-section, the term dividend shall have the meaning assigned to it in clause (22) of section 2, but shall not include sub-clause (e) thereof. ] (2) The provisions of this section shall apply in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stalment is so due by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997. 9. Second proviso inserted by the Taxation Laws (Amendment) Act, 2000, w.e.f. 4-1-2001. Earlier, the second proviso, as inserted by the Taxation Laws (Amendment) Act, 1991, w.e.f. 15-1-1991 and later on omitted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997, read as under : Provided further that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of- (a) restricting the amount of deduction under the third proviso to clause (ii) of sub-section (1) of section 32; (b) increase in the rate of surcharge under section 2 of the Finance Act, 1990 (12 of 1990), as amended by the Taxation Laws (Amendment) Act, 1991, and the assessee has paid the amount of shortfall,- (i) where it is a domestic company and- (1) the case falls under clause (a), as part of the instalment of advance tax which is immediately due; (2) the case falls under clause (b), on or before the 15th day of November, 1990, in respect of the instalment of advance tax due on the 15th day of September, 1990; (ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o pay simple interest at the rate of 4 [one] per cent on the amount of the shortfall from the tax due on the returned income: Provided that if the advance tax paid by the company on its current income on or before the 15th day of June or the 15th day of September, is not less than twelve per cent or, as the case may be, thirty-six per cent of the tax due on the returned income, then, it shall not be liable to pay any interest on the amount of the shortfall on those dates; 14. Substituted vide THE FINANCE ACT, 2016 w.e.f. 1st day of June, 2016, before it was read as, the assessee, other than a company, who is liable to pay advance tax under section 208 has failed to pay such tax or,- ( i ) the advance tax paid by the assessee on his current income on or before the 15th day of September is less than thirty per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than sixty per cent of the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of 5 [one] per cent per month for a period of three months on the amount of the shortfall from th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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