Section 215 - Interest payable by assessee

Section 215 Income Tax Act charges 15% interest when advance tax falls below 75% threshold

Section 215 of the Income-tax Act, 1961 governs interest payable by taxpayers on shortfall in advance tax payments. When advance tax paid falls short of 75% of assessed tax (83.33% for companies), simple interest at 15% per annum applies from April 1st following the financial year until regular assessment completion. Interest calculations adjust when tax is paid before assessment completion or when assessment orders modify the tax liability. The Assessing Officer can issue demand notices for additional interest or provide refunds for excess payments. The provision allows discretionary reduction or waiver of interest in prescribed circumstances. 'Assessed tax' is defined as tax determined through regular assessment, reduced by tax deductible at source, excluding variations due to Finance Act rate changes. First-time assessments under section 147 are treated as regular assessments for interest calculation purposes.