India - Income Tax Act 2010 - Saarc

1.647 CH. XIV - PROCEDURE FOR ASSESSMENT S. 139shall be liable to pay simple interest at 49 [fifteen] per cent per annum, reckonedfrom the day immediately following the specified date to the date of thefurnishing of the return or, where no return has been furnished, the date ofcompletion of the assessment under section 144, on the amount of the taxpayable on the total income as determined on regular assessment, as reduced bythe advance tax, if any, paid, and any tax deducted at source :Provided that the 50 [Assessing] Officer may, in such cases and under suchcircumstances as may be prescribed 51 , reduce or waive the interest payable byany assessee under this sub-section.Explanation 1.—For the purposes of this sub-section, “specified date”, in relationto a return for an assessment year, means,—(a) in the case of every assessee whose total income, or the total incomeof any person in respect of which he is assessable under this Act,includes any income from business or profession, the date of theexpiry of four months from the end of the previous year or wherethere is more than one previous year, from the end of the previousyear which expired last before the commencement of the assessmentyear or the 30th day of June of the assessment year, whichever is later;(b) in the case of every other assessee, the 30th day of June of theassessment year.]52[Explanation 2.—Where, in relation to an assessment year, an assessment ismade for the first time under section 147, the assessment so made shall beregarded as a regular assessment for the purposes of this sub-section.]53[(b) Where as a result of an order under section 147 or section 154 or section155 or section 250 or section 254 or section 260 or section 262 or section 263 orsection 264 54 [or an order of the Settlement Commission under sub-section (4) ofsection 245D], the amount of tax on which interest was payable under this subsectionhas been increased or reduced, as the case may be, the interest shall beincreased or reduced accordingly, and—(i) in a case where the interest is increased, the 55 [Assessing] Officer shallserve on the assessee, a notice of demand in the prescribed formspecifying the sum payable, and such notice of demand shall bedeemed to be a notice under section 156 and the provisions of this Actshall apply accordingly;(ii) in a case where the interest is reduced, the excess interest paid, if any,shall be refunded.]]49. Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.Section 84 of the Amendment Act has clarified that the increase in the rate of interest willapply in respect of any period falling after 30-9-1984, also in those cases where the interestbecame chargeable or payable from an earlier date.50. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.51. See rule 117A.52. Substituted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985. Earlier it wasamended by the Finance Act, 1972, w.e.f. 1-4-1972.53. Substituted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.54. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.55. Substituted for “Income-tax”, ibid., w.e.f. 1-4-1988.