India - Income Tax Act 2010 - Saarc

1.815 CH. XVII - COLLECTION AND RECOVERY - INTEREST CHARGEABLE S. 234B(iv) any deduction, from the Indian income-tax payable, allowed undersection 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 provisionsof section 115JAA.]Explanation 2.—Where, in relation to an assessment year, an assessment is madefor the first time under section 147 73 [or section 153A], the assessment so madeshall be regarded as a regular assessment for the purposes of this section.74[Explanation 3.—In Explanation 1 and in sub-section (3) “tax on the totalincome determined under sub-section (1) of section 143” shall not include theadditional income-tax, if any, payable under section 143.](2) Where, before the date of 75 [determination of total income under sub-section(1) of section 143 or] completion of a regular assessment, tax is paid by theassessee under section 140A or otherwise,—(i) interest shall be calculated in accordance with the foregoing provisionsof this section up to the date on which the tax is so paid, andreduced by the interest, if any, paid under section 140A towards theinterest chargeable under this section;(ii) thereafter, interest shall be calculated at the rate aforesaid on theamount by which the tax so paid together with the advance tax paidfalls short of the assessed tax.(3) Where, as a result of an order of reassessment or recomputation undersection 147 76 [or section 153A], the amount on which interest was payable undersub-section (1) is increased, the assessee shall be liable to pay simple interest atthe rate of 77 [one] per cent for every month or part of a month comprised in theperiod commencing on the day following 78 [the date of determination of totalincome under sub-section (1) of section 143 79 [and where a regular assessmentis made as is referred to in sub-section (1) following the date of such regularassessment]] and ending on the date of the reassessment or recomputation undersection 147 80 [or section 153A], on the amount by which the tax on the totalincome determined on the basis of the reassessment or recomputation exceedsthe tax on the total income determined 81 [under sub-section (1) of section 143 or]on the basis of the regular assessment aforesaid.73. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.74. Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.75. Inserted, ibid.76. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.77. 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. 1-6-2001.78. Substituted for “the date of the regular assessment” by the Direct Tax Laws (Amendment)Act, 1989, w.e.f. 1-4-1989.79. Substituted for “or regular assessment referred to in sub-section (1)” by the Finance Act,1995, w.r.e.f. 1-4-1989.80. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.81. Substituted for “the date of the regular assessment” by the Direct Tax Laws (Amendment)Act, 1989, w.e.f. 1-4-1989.