Payment deadline for tax demands triggers monthly interest and potential acceleration on instalment default, while relief may be available.
Clause 411 makes amounts in a notice of demand payable ordinarily within thirty days of service, permits the AO with Joint Commissioner approval to shorten that period, and charges simple monthly interest from the day after the due date until payment. The AO may extend time or allow instalments on timely application, but any instalment default accelerates the whole outstanding amount. Commissioners may reduce or waive interest for genuine hardship or circumstances beyond control, subject to cooperation and procedural safeguards. Where foreign law prevents remittance, the non remittable portion must not be treated as in default.