India - Income Tax Act 2010 - Saarc

S. 202 I.T. ACT, 1961 1.774(i) at one per cent for every month or part of a month on the amount ofsuch tax from the date on which such tax was deductible to the dateon which such tax is deducted; and(ii) at one and one-half per cent for every month or part of a month on theamount of such tax from the date on which such tax was deducted tothe date on which such tax is actually paid,and such interest shall be paid before furnishing the statement in accordancewith the provisions of sub-section (3) of section 200.](2) Where the tax has not been paid as aforesaid after it is deducted, 1 [the amountof the tax together with the amount of simple interest thereon referred to in subsection(1A)] shall be a charge upon all the assets of the person, or the company,as the case may be, referred to in sub-section (1).2[(3) No order shall be made under sub-section (1) deeming a person to be anassessee in default for failure to deduct the whole or any part of the tax from aperson resident in India, at any time after the expiry of—(i) two years from the end of the financial year in which the statement isfiled in a case where the statement referred to in section 200 has beenfiled;(ii) four years from the end of the financial year in which payment is madeor credit is given, in any other case :Provided that such order for a financial year commencing on or before the 1st dayof April, 2007 may be passed at any time on or before the 31st day of March, 2011.(4) The provisions of sub-clause (ii) of sub-section (3) of section 153 and ofExplanation 1 to section 153 shall, so far as may, apply to the time limit prescribedin sub-section (3).]Deduction only one mode of recovery.202. The power to 3 [recover] tax by deduction under 4 [the foregoing provisionsof this Chapter] shall be without prejudice to any other mode of recovery.(Contd. from p. 1.773)“(1A) Without prejudice to the provisions of sub-section (1), if any such person, principalofficer or company as is referred to in that sub-section does not deduct the whole or anypart of the tax or after deducting fails to pay the tax as required by or under this Act, heor it shall be liable to pay simple interest at *one per cent for every month or part of a monthon the amount of such tax from the date on which such tax was deductible to the date onwhich such tax is actually paid and such interest shall be paid before furnishing thestatement in accordance with the provisions of sub-section (3) of section 200.”*Provision relating to rate of interest was amended by the Finance Act, 2007, w.e.f.1-4-2008, Taxation Laws (Amendment) Act, 2003, w.e.f. 8-9-2003, Finance Act, 2001, w.e.f.1-6-2001, Finance Act, 1999, w.e.f. 1-6-1999, Taxation Laws (Amendment) Act, 1984, w.e.f.1-10-1984, Finance Act, 1972, w.e.f. 1-4-1972 and Taxation Laws (Amendment) Act, 1967,w.e.f. 1-10-1967.1. Substituted for “it” by the Finance Act, 1966, w.e.f. 1-4-1966.2. Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010.3. Substituted for “levy” by the Finance Act, 1987, w.e.f. 1-6-1987.4. Substituted for the portion beginning with the words “sections 192” and ending with“section 196D” by the Finance (No. 2) Act, 2004, w.e.f. 1-10-2004. Prior to its substitution,the quoted portion, as amended by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967, Finance(Contd. on p. 1.775)