TaxTMI 
TaxTMI 
When Tax payable and when assessee deemed in default (Collection and Recovery) - Section 411 (New) / 220 (Old)
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....d in a notice of demand(Other than any amount payable by way of advance tax) under section 289 within- • 30 days from the date of service of the notice; or • such shorter period as may be specified by the Assessing Officer with the previous approval of the Joint Commissioner, where allowing 30 days would be detrimental to the interests of the revenue. Section 411(2) - Effect of Appeal on Notice of Demand Filing of an appeal or initiation of any other proceeding does not invalidate the notice of demand. Accordingly- • the demand continues to remain valid until the disposal of the appeal or proceedings; and • the provisions of section 3 of the Taxation Laws (C....
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.....5,00,000 x 1% x 3 months = Rs.15,000 So the assessee has to pay: • Outstanding tax/demand: Rs.5,00,000 • Interest u/s 411(3): Rs.15,000 • Total: Rs.5,15,000 Section 411(3)(b): Exception in Respect of Penalty under Section 439 No interest shall be charged under section 411(3) in respect of any demand raised on account of penalty levied under section 439- (i) up to the date of passing of the order under section 359; or (ii) up to the date of passing of the order under section 363, where the assessment or reassessment has been made pursuant to directions issued by the Dispute Resolution Panel under section 275. Section 411(4) - No Double Levy of Interest Interest u....
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.... • up to and including the date on which the increased amount is actually paid. Section 411(7) - Waiver or Reduction of Interest Irrespective of sub-section (3), The Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner may reduce or waive the interest payable where- • payment would cause genuine hardship; • the default occurred due to circumstances beyond the control of the assessee; and • the assessee has co-operated in the assessment and recovery proceedings. Section 411(8) - Time Limit for Disposal of Application An application for waiver or reduction of interest shall be disposed of within twelve months from the end of the month in w....
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....oreign Income For the purposes of sub-section (13), income shall be deemed to have been brought into India where- • it has been utilised for expenditure incurred outside India; or • it has been brought into India in any form, whether capitalised or otherwise. Comparative Analysis: Section 220 (Income-tax Act, 1961) vs. Section 411 (Income-tax Act, 2025) Particulars Section 220 (Income-tax Act, 1961) Section 411 (Income-tax Act, 2025) Scope Governs the time for payment of demand, levy of interest and consequences of default. Governs the time for payment of demand, levy of interest and consequences of default. Time for payment Demand payable within 30 days of ....
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....te or other orders under section 411(6). Waiver or reduction of interest Commissioner may reduce or waive interest subject to prescribed conditions under section 220(2A). Commissioner may reduce or waive interest subject to prescribed conditions under section 411(7) to (9). Assessee deemed in default Failure to pay demand results in the assessee being treated as in default under sections 220(4) and 220(5). Failure to pay demand results in the assessee being treated as in default under sections 411(10) and 411(11). Stay of demand during appeal Assessing Officer may treat the assessee as not being in default during pendency of appeal under section 220(6). Assessing Officer may treat the as....