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<h1>Income-tax amendment defers interest on penalty demands until appellate orders, clarifies 1% monthly interest on unpaid notices.</h1> Unpaid amounts in a notice of demand attract simple interest at 1% per month from the day after the specified period until payment; the Assessing Officer may grant instalments or time extensions. Interest is not charged on penalty-related demands until the relevant appellate or review orders are passed, including where assessments follow Dispute Resolution Panel directions.
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