TaxTMI 
TaxTMI 
Question - What are the proposed amendments in section 234B of the Income-tax Act in Finance Bill 2015 ?
Interest for defaults in payment of advance tax in case of re-assessment and where additional income is disclosed before the Settlement Commission under section 245C
28 Feb 2015 
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Interest on advance tax recalibrated to run from the first April following the year until reassessment or settlement application.
Amendments revise interest computation for advance tax defaults so that for reassessments the interest period begins on the first day of April following the financial year and ends on the date of reassessment. A new provision requires assessees who file applications before the Settlement Commission disclosing additional income to pay simple interest from the first day of April of the assessment year until the date of application; if the Commission's order further increases disclosed income, interest applies on the incremental tax from the same April date until the date of the order. (AI Summary)
Amendments revise interest computation for advance tax defaults so that for reassessments the interest period begins on the first day of April following the financial year and ends on the date of reassessment. A new provision requires assessees who file applications before the Settlement Commission disclosing additional income to pay simple interest from the first day of April of the assessment year until the date of application; if the Commission's order further increases disclosed income, interest applies on the incremental tax from the same April date until the date of the order. (AI Summary)