India - Income Tax Act 2010 - Saarc

S. 244A I.T. ACT, 1961 1.826calculated at the rate of 40 [one-half per cent] for every month or partof a month comprised in the period from the 1st day of April of theassessment year to the date on which the refund is granted:Provided that no interest shall be payable if the amount of refund isless than ten per cent of the tax as determined 41 [under 42 [sub-section(1) of section 115WE or] sub-section (1) of section 143 or] on regularassessment;(b) in any other case, such interest shall be calculated at the rate of 43 [onehalfper cent] for every month or part of a month comprised in theperiod or periods from the date or, as the case may be, dates ofpayment of the tax or penalty to the date on which the refund isgranted.Explanation.—For the purposes of this clause, “date of payment of tax or penalty”means the date on and from which the amount of tax or penalty specified inthe notice of demand issued under section 156 is paid in excess of suchdemand.(2) If the proceedings resulting in the refund are delayed for reasons attributableto the assessee, whether wholly or in part, the period of the delay so attributableto him shall be excluded from the period for which interest is payable, and whereany question arises as to the period to be excluded, it shall be decided by the ChiefCommissioner or Commissioner whose decision thereon shall be final.(3) Where, as a result of an order under 44 [sub-section (3) of section 115WE orsection 115WF or section 115WG or] 45 [sub-section (3) of section 143 or section144 or] section 147 or section 154 or section 155 or section 250 or section 254 orsection 260 or section 262 or section 263 or section 264 or an order of theSettlement Commission under sub-section (4) of section 245D, the amount onwhich interest was payable under sub-section (1) has been increased or reduced,as the case may be, the interest shall be increased or reduced accordingly, andin a case where the interest is reduced, the Assessing Officer shall serve on theassessee a notice of demand in the prescribed form specifying the amount of theexcess interest paid and requiring him to pay such amount; and such notice ofdemand shall be deemed to be a notice under section 156 and the provisions ofthis Act shall apply accordingly.40. Substituted for “two-third per cent” by the Taxation Laws (Amendment) Act, 2003, w.e.f.8-9-2003. Earlier “two-third per cent” was substituted for “three-fourth per cent” by theFinance Act, 2002, w.e.f. 1-6-2002, “three-fourth per cent” was substituted for “one percent” by the Finance Act, 2001, w.e.f. 1-6-2001 and “one per cent” was substituted for “oneand one-half per cent” by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.41. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.42. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.43. Substituted for “two-third per cent” by the Taxation Laws (Amendment) Act, 2003, w.e.f.8-9-2003. Earlier “two-third per cent” was substituted for “three-fourth per cent” by theFinance Act, 2002, w.e.f. 1-6-2002, “three-fourth per cent” was substituted for “one percent” by the Finance Act, 2001, w.e.f. 1-6-2001 and “one per cent” was substituted for “oneand one-half per cent” by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.44. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.45. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.