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<h1>Interest Rate in Section 201(1A) of Income-tax Act Changed to 1% Monthly Effective April 2008</h1> Section 201 of the Income-tax Act has been amended by the Finance Act, 2007. In sub-section (1A), the previous interest rate of 'twelve per cent. per annum' is replaced with 'one per cent. for every month or part of a month.' This amendment is effective from April 1, 2008.