Income Tax Act, 2025
Section 9: Subs. by Act 14 of 1969, s. 18, for sub-section (1) (w.e.f. 11970).
9. Subs. by Act 14 of 1969, s. 18, for sub-section (1) (w.e.f. 11970).
10. Subs. by Act 19 of 1978, s. 27, for “advance tax under section 212 on the basis of his own estimate” (w.e.f. 11978).
680
estimate)], and the advance tax so paid is less than seventy-five per cent. of the assessed tax, simple
interest at the rate of1[fifteen per cent.] per annum from the 1st day of April next following the said
financial year up to the date of the regular assessment shall be payable by the assessee upon the amount
by which the advance tax so paid falls short of the assessed tax:]
2[Provided that in the case of an assessee, being a company, the provisions of this sub-section shall
have effect as if for the words “seventy-five per cent.”, the words “eighty-three and one-third per cent.”
had been substituted.]
3[(2) Where before the date of completion of a regular assessment, tax is paid by the assessee
under section 140A or otherwise,—
(i) interest shall be calculated in accordance with the foregoing provision up to the date on which
the tax is so paid ; and
(ii) thereafter, interest shall be calculated at the rate aforesaid on the amount by which the tax as
so paid (in so far as it relates to income subject to advance tax) falls short of the assessed tax.]
4[(3) Where as a result of an order under section 147 or section 154 or section 155 or section
250 or section 254 or section 260 or section 262 or section 263 or section 264 5[or an order of the
Settlement Commission under sub-section (4) of section 245D], the amount on which interest was
payable under sub-section (1) has been increased or reduced, as the case may be, the interest shall be
increased or reduced accordingly, and—
(i) in a case where the interest is increased, the 6[Assessing Officer] shall serve on the assessee, a
notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall
be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly;
(ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.]
(4) In such cases and under such circumstances as may be prescribed, the 6[Assessing Officer] may
reduce or waive the interest payable by the assessee under this section.
7[(5) In this section and sections 217 and 273, “assessed tax” means the tax determined on the basis of
the regular assessment (reduced by the amount of tax deductible in accordance with the provisions
of sections 192 to 194, 8[section 194A, section 194C] 9[, section 194D] 10[, section 195 and section
196A] so far as such tax relates to income subject to advance tax and so far as it is not due to variations in
the rates of tax made by the Finance Act enacted for the year for which the regular assessment is made.]
11[(6) Where, in relation to an assessment year, an assessment is made for the first time under section
147, the assessment so made shall be regarded as a regular assessment for the purposes of this section
and sections 216, 217 and 273.]
(w.e.f. 11970).
10. Subs. by Act 19 of 1978, s. 27, for “advance tax under section 212 on the basis of his own estimate” (w.e.f. 11978).
680
estimate)], and the advance tax so paid is less than seventy-five per cent. of the assessed tax, simple
interest at the rate of1[fifteen per cent.] per annum from the 1st day of April next following the said
financial year up to the date of the regular assessment shall be payable by the assessee upon the amount
by which the advance tax so paid falls short of the assessed tax:]
2[Provided that in the case of an assessee, being a company, the provisions of this sub-section shall
have effect as if for the words “seventy-five per cent.”, the words “eighty-three and one-third per cent.”
had been substituted.]
3[
Where before the date of completion of a regular assessment, tax is paid by the assessee
under section 140A or otherwise,—
interest shall be calculated in accordance with the foregoing provision up to the date on which
the tax is so paid ; and
thereafter, interest shall be calculated at the rate aforesaid on the amount by which the tax as
so paid (in so far as it relates to income subject to advance tax) falls short of the assessed tax.]
4[
Where as a result of an order under section 147 or section 154 or section 155 or section
250 or section 254 or section 260 or section 262 or section 263 or section 264 5[or an order of the
Settlement Commission under sub-section
of section 245D], the amount on which interest was
payable under sub-section
has been increased or reduced, as the case may be, the interest shall be
increased or reduced accordingly, and—
in a case where the interest is increased, the 6[Assessing Officer] shall serve on the assessee, a
notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall
be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly;
in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.]
In such cases and under such circumstances as may be prescribed, the 6[Assessing Officer] may
reduce or waive the interest payable by the assessee under this section.
7[
In this section and sections 217 and 273, “assessed tax” means the tax determined on the basis of
the regular assessment (reduced by the amount of tax deductible in accordance with the provisions
of sections 192 to 194, 8[section 194A, section 194C] 9[, section 194D] 10[, section 195 and section
196A] so far as such tax relates to income subject to advance tax and so far as it is not due to variations in
the rates of tax made by the Finance Act enacted for the year for which the regular assessment is made.]
11[
Where, in relation to an assessment year, an assessment is made for the first time under section
147, the assessment so made shall be regarded as a regular assessment for the purposes of this section
and sections 216, 217 and 273.]