Clause 424 - Interest for defaults in payment of advance tax.

Interest on default of advance tax accrues monthly on unpaid or insufficient advance tax until assessment or reassessment completion.

Liability to simple monthly interest attaches where an assessee fails to pay advance tax or the advance tax paid falls short of the assessed tax; interest runs from the first April after the tax year until determination of total income or completion of regular assessment, on the full assessed tax where no advance tax was paid or on the shortfall where partial advance tax was paid, with specified reductions to assessed tax for tax withheld, foreign tax reliefs and tax credits, and adjustments following reassessment or other assessment orders leading to recalculation, demand or refund of interest.