TaxTMI 
TaxTMI 
Interest for deferment of advance tax
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....advance tax paid by the assessee on the current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent. on the amount of the shortfall from the tax due on the returned income: Provided that if the advance tax paid by the assessee on the current income, on or before the 15th day of June or the 15th day of September, is not less than twelve per cent. or, as the case may be, thirty-six per cent. of the tax due on the returned income, then, the assessee shall not be liable to pay any interest on the amount of the shortfall on those dates;] (b) ^27[^32[an assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be], who is liable to pay advance tax under section 208 has failed to pay such tax or the advance tax paid by the assessee on its current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one per cent. on the amount of the shor....
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....he 1st day of April immediately following the financial year in which the advance tax is paid or payable, as reduced by the amount of,- (i) any tax deductible or collectible at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income; ^36[(ia) any relief of tax allowed under section 89;] (ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India; (iii) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section; (iv) any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and (v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA ^25[or section 115JD].]] ^39[Explanation 2.-For the purposes of this sub-section, the term "dividend" shall have the meaning assigned to it in clause (22) of section 2, but shall not include sub-clause (e) thereof.] **************** ....
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....r where no such instalment is so due" 13. Omitted vide Section 54 of the Finance (No. 2) Act, 1996 w.e.f. 01-04-1997 before it was read as, "^5[Provided further that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of- (a) restricting the amount of deduction under the third proviso to clause (ii) of sub-section (1) of section 32; (b) increase in the rate of Surcharge under section 2 of the Finance Act, 1990, as amended by the Taxation Laws (Amendment) Act, 1991 (12 of 1990), and the assessee has paid the amount of shortfall,- (i) where it is a domestic company and- (1) the case falls under clause (a), as part of the instalment of advance tax which is immediately due; (2) the case falls under clause (b), on or before the 15^th day of November, 1990 in respect of the instalment of advance tax due on the 15th day of September, 1990; (ii) where it is not a domestic company and- (1) the case falls under clause (a), as part of the instalment of advance tax which is immediately ....
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....l apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years." 25. Inserted vide Section 87 of the Finance Act, 2012 w.e.f. 01-04-2013 26. Substituted vide Section 91 of the Finance Act, 2016 w.e.f. 01-06-2016 before it was read as, "(a) the company which is liable to pay advance tax under section 208 has failed to pay such tax or- (i) the advance tax paid by the company on its current income on or before the 15th day of June is less than fifteen per cent. of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than forty-five per cent. of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than seventy-five per cent. of the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of ^20[one per cent.] per month for a period of three months on the amount of the shortfall from fifteen per cent. or forty-five per cent. or seventy-five per cent., as the case may be, of the tax d....