Section 220: Tax Payment Deadlines, Interest Charges, and Relief Options Explained Under Income Tax Act
Section 220 outlines the payment and default conditions for tax dues under the Income Tax Act. Tax specified in a demand notice must be paid within 30 days, but this period can be shortened with approval. If unpaid, interest at 1% per month is charged, with exceptions for certain sections. Interest can be reduced or waived if payment causes hardship, circumstances were beyond control, and the assessee cooperated. Extensions or installment payments may be allowed. Defaults occur if payments are not made on time. Appeals can delay default status, and foreign income restrictions can affect default determination. Monetary limits for interest reduction vary by authority.