Section 217 - Interest payable by assessee when no estimate made

Assessees face 15% annual interest penalty under Section 217 for failing to submit advance tax estimates

Section 217 of the Income Tax Act, 1961 prescribes interest penalties for assessees who fail to submit required advance tax estimates. Under subsection (1), when the Assessing Officer determines during regular assessment that an assessee has not submitted the mandatory statement or estimate as required under section 209A, simple interest at fifteen percent per annum becomes payable. This interest is calculated from April 1st following the financial year when advance tax was due until the regular assessment date, applied to the assessed tax amount. Subsection (1A) addresses cases where assessees required to submit estimates under specific provisions fail to do so, imposing the same fifteen percent interest rate on the shortfall between advance tax paid and assessed tax. The provision incorporates procedural aspects from section 215 regarding interest calculations and collection mechanisms.