Income Tax Act, 1961
Section 6: Ins. by Act 25 of 2014, s. 64 (w.e.f. 12014).
6. Ins. by Act 25 of 2014, s. 64 (w.e.f. 12014).
7. Subs. by Act 4 of 1988, s. 85 for “fifteen per cent. per annum from the day commencing after the end of the period
mentioned in sub-section (1)” (w.e.f. 11989).
8. Subs. by Act 54 of 2003, s. 10, for “one and one-fourth per cent.” (w.e.f. 82003). Earlier the quoted words were subs.
by Act 14 of 2001, s. 76, for “one and one-half per cent.” (w.e.f. 12001).
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1[Provided that, where as a result of an order under section 154, or section 155, or section 250,
or section 254, or section 260, or section 262, or section 264 2[or an order of the Settlement Commission
under sub-section (4) of section 245D], the amount on which interest was payable under this section had
been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be
refunded:]
3[Provided further that where as a result of an order under sections specified in the first proviso, the
amount on which interest was payable under this section had been reduced and subsequently as a result of
an order under said sections or section 263, the amount on which interest was payable under this section
is increased, the assessee shall be liable to pay interest under sub-section (2) from the day immediately
following the end of the period mentioned in the first notice of demand, referred to in sub-section (1) and
ending with the day on which the amount is paid:]
2[4[Provided also] that in respect of any period commencing on or before the 31st day of March, 1989
and ending after that date, such interest shall, in respect of so much of such period as falls after that date,
be calculated at the rate of one and one-half per cent for every month or part of a month.]
5[(2A) Notwithstanding anything contained in sub-section (2), 6[the 7[8[Principal Chief Commissioner
or Chief Commissioner] or 9[Principal Commissioner or Commissioner]] may] reduce or waive the
amount of 10[interest paid or payable by an assessee] under the said sub-section if, 11[he is satisfied]
that—
(i) payment of such amount 12[has caused or would cause genuine hardship] to the assessee;
(ii) default in the payment of the amount on which 13[interest has been paid or was payable] under
the said sub-section was due to circumstances beyond the control of the assessee; and
(iii) theassessee has co-operated in any inquiry relating to the assessment or any proceeding for
the recovery of any amount due from him:]
14[Provided that the order accepting or rejecting the application of the assessee, either in full or in
part, shall be passed within a period of twelve months from the end of the month in which the
application is received:
of section 245D], the amount on which interest was payable under this section had
been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be
refunded:]
3[Provided further that where as a result of an order under sections specified in the first proviso, the
amount on which interest was payable under this section had been reduced and subsequently as a result of
an order under said sections or section 263, the amount on which interest was payable under this section
is increased, the assessee shall be liable to pay interest under sub-section
from the day immediately
following the end of the period mentioned in the first notice of demand, referred to in sub-section
and
ending with the day on which the amount is paid:]
2[4[Provided also] that in respect of any period commencing on or before the 31st day of March, 1989
and ending after that date, such interest shall, in respect of so much of such period as falls after that date,
be calculated at the rate of one and one-half per cent for every month or part of a month.]
5[
Notwithstanding anything contained in sub-section
payment of such amount 12[has caused or would cause genuine hardship] to the assessee;
default in the payment of the amount on which 13[interest has been paid or was payable] under
the said sub-section was due to circumstances beyond the control of the assessee; and
theassessee has co-operated in any inquiry relating to the assessment or any proceeding for
the recovery of any amount due from him:]
14[Provided that the order accepting or rejecting the application of the assessee, either in full or in
part, shall be passed within a period of twelve months from the end of the month in which the
application is received: