India - Income Tax Act 2010 - Saarc

S. 234B I.T. ACT, 1961 1.814(ii) in a case where the interest is reduced, the excess interest paid, if any,shall be refunded.(5) The provisions of this section shall apply in respect of assessments for theassessment year commencing on the 1st day of April, 1989 and subsequentassessment years.]67[Interest for defaults in payment of advance tax.234B. (1) Subject to the other provisions of this section, where, in any financialyear, an assessee who is liable to pay advance tax under section 208 hasfailed to pay such tax or, where the advance tax paid by such assessee under theprovisions of section 210 is less than ninety per cent of the assessed tax, theassessee shall 68 be liable to pay simple interest at the rate of 69 [one] per cent forevery month or part of a month comprised in the period from the 1st day of Aprilnext following such financial year 70 [to the date of determination of total incomeunder sub-section (1) of section 143 71 [and where a regular assessment is made,to the date of such regular assessment, on an amount]] equal to the assessed taxor, as the case may be, on the amount by which the advance tax paid as aforesaidfalls short of the assessed tax.72[Explanation 1.—In this section, “assessed tax” means the tax on the totalincome determined under sub-section (1) of section 143 and where a regularassessment is made, the tax on the total income determined under such regularassessment as reduced by the amount of,—(i) any tax deducted or collected at source in accordance with theprovisions of Chapter XVII on any income which is subject to suchdeduction or collection and which is taken into account in computingsuch total income;(ii) any relief of tax allowed under section 90 on account of tax paid in acountry outside India;(iii) any relief of tax allowed under section 90A on account of tax paid ina specified territory outside India referred to in that section;67. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.68. For the meaning of the term “shall”, see Taxmann’s Direct Taxes Manual, Vol. 3.69. Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f.8-9-2003. Earlier the quoted words were amended by the Finance Act, 1999, w.e.f. 1-6-1999and Finance Act, 2001, w.e.f. 1-6-2001.70. Substituted for “to the date of the regular assessment” by the Direct Tax Laws (Amendment)Act, 1989, w.e.f. 1-4-1989.71. Substituted for “or regular assessment, on an amount” by the Finance Act, 1995, w.r.e.f.1-4-1989.72. Substituted by the Finance Act, 2006, w.e.f. 1-4-2007. Prior to its substitution, Explanation1, as substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989 andFinance Act, 2001, w.r.e.f. 1-4-1989, read as under :‘Explanation 1.—In this section, “assessed tax” means the tax on the total incomedetermined under sub-section (1) of section 143 or on regular assessment as reduced bythe amount of tax deducted or collected at source in accordance with the provisions ofChapter XVII on any income which is subject to such deduction or collection and whichis taken into account in computing such total income.’