Penal interest computation: use the lower applicable tax rate when calculating interest on advance tax, prior guidance cancelled. Penal interest under 18A(6)/215 must be calculated by reference to the lower of the two Finance Act rates applicable to the regular assessment or to the year when advance tax was paid; the earlier Board letter endorsing calculation by reference to a higher rate is cancelled. Cases completed before this instruction need not be reopened and the instruction should be brought to the notice of all officers.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Penal interest computation: use the lower applicable tax rate when calculating interest on advance tax, prior guidance cancelled.
Penal interest under 18A(6)/215 must be calculated by reference to the lower of the two Finance Act rates applicable to the regular assessment or to the year when advance tax was paid; the earlier Board letter endorsing calculation by reference to a higher rate is cancelled. Cases completed before this instruction need not be reopened and the instruction should be brought to the notice of all officers.
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