When tax payable and when assessee deemed in default [ Section 220 ]

Tax payment deadline and default consequences: interest accrues and authorities may grant waiver or instalment relief.

Section 220 requires payment within thirty days of a notice of demand, subject to shortening by the Assessing Officer with Joint Commissioner approval. Failure to pay within the prescribed or extended period renders the assessee in default and liable to simple interest from the day after the due period until payment, with interest adjusted for subsequent amendments to the tax amount and exceptions where interest is charged under certain withholding or collection provisions. Authorities may reduce or waive interest for hardship, beyond-control defaults, and cooperation, and may permit time extensions or instalment payments under conditions.