Income Tax Act, 1961
Section 11: Ins. by Act 67 of 1984, s. 36 (w.e.f. 11985).
11. Ins. by Act 67 of 1984, s. 36 (w.e.f. 11985).
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216. Interest payable by assessee in case of under-estimate, etc.—Where, on making the regular
assessment, the 1[Assessing Officer] finds that any assessee has—
2[(a) under 3[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 instalments; 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 4[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 between the amount paid in each such instalment 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 instalment 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.
217. Interest payable by assessee when no estimate made.—5[(1) Where, on making the regular
assessment, 6[the 1[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 4[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 7[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 1[Assessing Officer] finds that 8[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 4[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 9[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.]
under 3[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 instalments; or
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 4[fifteen per cent.] per annum—
in the case referred to in clause
in the case referred to in clause
Where, on making the regular
assessment, 6[the 1[Assessing Officer] finds—
that any such person as is referred to in clause
of sub-section
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
of that section; or
that any such person as is referred to in clause
of sub-section
of section 209A has not
sent the estimate referred to in that clause,
simple interest at the rate of 4[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 7[the said sub-section
or
sub-section
of section 215.
Where, on making the regular assessment, the 1[Assessing Officer] finds that 8[any person who
is required to send an estimate under sub-section
of section 209A or] any such person as is referred to
in sub-section
of section 212 has not sent the estimate referred to therein, simple interest at the rate
of 4[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 9[the said sub-section
or, as the case may be, sub-section
of section 215.]