Interest for default in advance tax applies where advance tax is insufficient, leading to monthly simple interest liability until assessment. Where advance income-tax is unpaid or is less than ninety per cent of assessed tax, the assessee owes simple monthly interest on the shortfall from the ... Summary
Interest for default in advance tax applies where advance tax is insufficient, leading to monthly simple interest liability until assessment.
Where advance income-tax is unpaid or is less than ninety per cent of assessed tax, the assessee owes simple monthly interest on the shortfall from the start of the financial year until determination of total income or assessment. Interest is computed on assessed tax less advance tax, adjusted where self-assessment tax is paid before determination; interest already paid under provisional provisions reduces subsequent interest. Reassessment increases attract additional monthly interest on the incremental tax, and interest is adjusted for rectification, revision or appellate orders with corresponding notices and refunds where applicable.
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