Interest on advance tax defaults: new accrual rules for settlement applications and reassessments increase liability until resolution.

A new provision makes an assessee who files an application before the Settlement Commission liable for simple interest at a monthly rate on additional tax from the first day of the assessment year until the application date; where the Commission's order increases disclosed income, interest runs from the first day of the assessment year until the order date on the excess tax. The commencement date for interest on increases arising from reassessment or recomputation is changed to the first day of April following the financial year and continues until reassessment or recomputation.

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