Tax demand payment timelines and interest liability under section 220, including waiver, instalments, and default rules. Tax under a notice of demand under section 156 is generally payable within 30 days, though the Assessing Officer may shorten that period with prior approval if revenue is at risk. Failure to pay within time attracts simple interest at 1% per month or part of a month, subject to adjustment where the demand is later reduced or increased, and subject to specified exclusions and overlaps with other interest provisions. The section also provides for reduction or waiver of interest on hardship grounds, extension of time or instalments, deemed default consequences, and limited discretion to treat an assessee as not in default in disputed or foreign remittance-restricted cases.
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.
Tax demand payment timelines and interest liability under section 220, including waiver, instalments, and default rules.
Tax under a notice of demand under section 156 is generally payable within 30 days, though the Assessing Officer may shorten that period with prior approval if revenue is at risk. Failure to pay within time attracts simple interest at 1% per month or part of a month, subject to adjustment where the demand is later reduced or increased, and subject to specified exclusions and overlaps with other interest provisions. The section also provides for reduction or waiver of interest on hardship grounds, extension of time or instalments, deemed default consequences, and limited discretion to treat an assessee as not in default in disputed or foreign remittance-restricted cases.
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