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What is Interest payable by assessee in case of under-estimate, etc? What is Interest payable by assessee when no estimate made? Section 216 and 217 of Income Tax Act 1961

Interest payable by assessee in case of under-estimate, etc and Interest payable by assessee when no estimate made are defined under section 216 and 217 of Income Tax Act 1961. Provisions under these Sections are :

Section 216 of Income Tax Act "Interest payable by assessee in case of under-estimate, etc"

Section 216. Where, on making the regular assessment, the Assessing Officer finds that any assessee has-

(a) under section 209A or section 212 under-estimated the advance tax payable by him and thereby reduced the amount payable in either of the first two Installments; or

(b) under section 213 wrongly deferred the payment of advance tax on a part of his income ;
he may direct that the assessee shall pay simple interest at fifteen per cent per annum-

 

(i) in the case referred to in clause (a), for the period during which the payment was deficient, on the difference bet-ween the amount paid in each such Installment and the amount which should have been paid, having regard to the aggregate advance tax actually paid during the year; and

(ii) in the case referred to in clause (b), for the period during which the payment of advance tax was so deferred.
Explanation.-For the purposes of this section, any Installment due before the expiry of six months from the commencement of the previous year in respect of which it is to be paid shall be deemed to have become due fifteen days after the expiry of the said six months.

Section 217 of Income Tax Act "Interest payable by assessee when no estimate made"

Section

217. (1) Where, on making the regular assessment, the Assessing Officer finds-

(a) that any such person as is referred to in clause (a) of sub-section (1) of section 209A has not sent the statement referred to in that clause or the estimate in lieu of such statement referred to in sub-section (2) of that section; or

(b) that any such person as is referred to in clause (b) of sub-section (1) of section 209A has not sent the estimate referred to in that clause, simple interest at the rate of fifteen per cent per annum from the 1st day of April next following the financial year in which the advance tax was payable in accordance with the said sub-section (1) or sub-section (2) up to the date of the regular assessment shall be payable by the assessee upon the amount equal to the assessed tax as defined in sub-section (5) of section 215.

(1A) Where, on making the regular assessment, the Assessing Officer finds that any person who is required to send an estimate under sub-section (4) of section 209A or any such person as is referred to in sub-section (3A) of section 212 has not sent the estimate referred to therein, simple interest at the rate of fifteen per cent per annum from the 1st day of April next following the financial year in which the advance tax was payable in accordance with the said sub-section (4) or, as the case may be, sub-section (3A) up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax paid by him falls short of the assessed tax as defined in sub-section (5) of section 215.

(2) The provisions of sub-sections (2), (3) and (4) of section 215 shall apply to interest payable under this section as they apply to interest payable under that section.

Income Tax Act 1961

What is Interest payable by assessee in case of under-estimate, etc? What is Interest payable by assessee when no estimate made? Section 216 and 217 of Income Tax Act 1961

When assessee deemed to be in default? What is Credit for advance tax? Section 218 and 219 of Income Tax Act 1961

When tax payable and when assessee deemed in default? Penalty payable when tax in default? Section 220 and 221 of Income Tax Act 1961

What is Certificate to Tax Recovery Officer? Tax Recovery Officer by whom recovery is to be effected? Section 222 and 223 of Income Tax Act 1961

What is Validity of certificate and cancellation or amendment thereof? What is Stay of proceedings in pursuance of certificate and amendment or cancellation thereof? Section 224 and 225 of Income Tax Act 1961

What is Other modes of recovery? What is Recovery through State Government? Section 226 and 227 of Income Tax Act 1961

What is Other modes of recovery? What is Recovery through State Government? Section 226 and 227 of Income Tax Act 1961

What is Recovery of tax in pursuance of agreements with foreign countries? What is Recovery of penalties, fine, interest and other sums? What is Tax clearance certificate? Section 228A, 229 and 230 of Income Tax Act 1961

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