Income Tax Act, 2025
Section 1: Subs. by Act 22 of 2007, s. 40, for sub-sections (2) and (3) (w.e.f. 12007).
1. Subs. by Act 22 of 2007, s. 40, for sub-sections (2) and (3) (w.e.f. 12007).
532
(iii) one per cent. per month, for three months on an amount by which the advance tax paid on or
before the 15th December of the financial year falls short of seventy-five per cent. of the advance tax
payable; and
(iv) one per cent. on an amount by which the advance tax paid on or before the 15th March of the
financial year falls short of hundred per cent. of the advance tax payable.
(4) Where an assessee, being a person other than a company, has failed to pay the advance tax
payable by him on or before the due date for any instalment or where the advance tax paid by him is less
than the amount payable by the due date, he shall be liable to pay simple interest calculated at the rate
of—
(i) one per cent. per month, for three months on an amount by which the advance tax paid on or
before the 15th September of the financial year falls short of thirty per cent. of the advance tax
payable;
(ii) one per cent. per month, for three months on an amount by which the advance tax paid on or
before the 15th December of the financial year falls short of sixty per cent of the advance tax payable;
and
(iii) one per cent. on an amount by which the advance tax paid on or before the 15th March of the
financial year falls short of hundred per cent. of the advance tax payable.
(5) Where an assessee has failed to pay the advance tax payable by him during a financial year or
where the advance tax paid by him is less than ninety per cent. of the tax assessed under section 115WE
or section 115WF or section 115WG, the assessee shall be liable to pay simple interest at the rate of one
per cent. per month, for every month or part of a month comprised in the period from the 1st day of April
next following such financial year to the date of assessment of tax under section 115WE or section
115WF or section 115WG.]
115WK. Interest for default in furnishing return of fringe benefits.—(1) Where the return of
fringe benefits for any assessment year under sub-section (1) or sub-section (3) of section 115WD or in
response to a notice under sub-section (2) of that section, is furnished after the due date, or is not
furnished, the employer shall be liable to pay simple interest at the rate of one per cent. for every month
or part of a month comprised in the period commencing on the date immediately following the due date,
and,—
(a) where the return is furnished after the due date, ending on the date of furnishing of the return;
or
(b) where no return has been furnished, ending on the date of completion of the assessment under
section 115WF,
on the amount of the tax on the value of fringe benefits as determined under sub-section (1) of section
115WE or regular assessment as reduced by the advance tax paid under section 115WJ.
Explanation 1.—In this section, “due date” means the date specified in the Explanation to
sub-section (1) of section 115WD as applicable in the case of the employer.
Explanation 2.—Where, in relation to an assessment year, an assessment is made for the first time
under section 115WG, the assessment so made shall be regarded as a regular assessment for the purposes
of this section.
(2) The provisions contained in sub-sections (2) to (4) of section 234A shall, so far as may be, apply
to this section.
533
1[115WKA. Recovery of fringe benefit tax by the employer from the employee.—
Notwithstanding anything contained in any agreement or scheme under which any specified security or
sweat equity shares referred to in clause (d) of sub-section (1) of section 115WB has been allotted or
transferred, directly or indirectly, by the employer on or after the 1st day of April, 2007, it shall be lawful
for the employer to vary the agreement or scheme under which such specified security or sweat equity
shares has been allotted or transferred so as to recover from the employee the fringe benefit tax to the
extent to which such employer is liable to pay the fringe benefit tax in relation to the value of fringe
benefits provided to the employee and determined under clause (ba) of sub-section (1) of section
115WC.]
2[115WKB. Deemed payment of tax by employee.—(1) Where an employer has paid any fringe
benefit tax with respect to allotment or transfer of specified security or sweat equity shares, referred to in
clause (d) of sub-section (1) of section 115WB, and has recovered such tax subsequently from an
employee, it shall be deemed that the fringe benefit tax so recovered is the tax paid by such employee in
relation to the value of the fringe benefit provided to him only to the extent to which the amount thereof
relates to the value of the fringe benefit provided to such employee, as determined under clause (ba) of
sub-section (1) of section 115WC.
(2) Notwithstanding anything contained in any other provisions of this Act, where the fringe benefit
tax recovered from the employee is deemed to be the tax paid by such employee under sub-section (1),
such employee shall, under this Act, not be entitled to claim—
(i) any refund out of such payment of tax; or
(ii) any credit of such payment of tax against tax liability on other income or against any other
tax liability.]
115WL. Application of other provisions of this Act.—Save as otherwise provided in this Chapter,
all other provisions of this Act shall, as far as may be, apply in relation to fringe benefits also.
3[115WM. Chapter XII-H not to apply after a certain date.—Nothing contained in this Chapter
shall apply, in respect of any assessment for the assessment year commencing on the 1st day of April,
2010 or any subsequent assessment year.]
CHAPTER XIII
INCOME-TAX AUTHORITIES
A.—Appointment and control
4[116. Income-tax authorities.—There shall be the following classes of income-tax authorities for
the purposes of this Act, namely:—
(a) the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963
(54 of 1963),
5[(aa) Principal Directors General of Income-tax or Principal Chief Commissioners of
Income-tax,]
(b) Directors-General of Income-tax or Chief Commissioners of Income-tax,
5[(ba) Principal Directors of Income-tax or Principal Commissioners of Income-tax,]
and
(w.e.f. 12007).
532
one per cent. per month, for three months on an amount by which the advance tax paid on or
before the 15th December of the financial year falls short of seventy-five per cent. of the advance tax
payable; and
one per cent. on an amount by which the advance tax paid on or before the 15th March of the
financial year falls short of hundred per cent. of the advance tax payable.
Where an assessee, being a person other than a company, has failed to pay the advance tax
payable by him on or before the due date for any instalment or where the advance tax paid by him is less
than the amount payable by the due date, he shall be liable to pay simple interest calculated at the rate
of—
one per cent. per month, for three months on an amount by which the advance tax paid on or
before the 15th September of the financial year falls short of thirty per cent. of the advance tax
payable;
one per cent. per month, for three months on an amount by which the advance tax paid on or
before the 15th December of the financial year falls short of sixty per cent of the advance tax payable;
and
one per cent. on an amount by which the advance tax paid on or before the 15th March of the
financial year falls short of hundred per cent. of the advance tax payable.
Where an assessee has failed to pay the advance tax payable by him during a financial year or
where the advance tax paid by him is less than ninety per cent. of the tax assessed under section 115WE
or section 115WF or section 115WG, the assessee shall be liable to pay simple interest at the rate of one
per cent. per month, for every month or part of a month comprised in the period from the 1st day of April
next following such financial year to the date of assessment of tax under section 115WE or section
115WF or section 115WG.]
115WK. Interest for default in furnishing return of fringe benefits.—
Where the return of
fringe benefits for any assessment year under sub-section
or sub-section
of section 115WD or in
response to a notice under sub-section
of that section, is furnished after the due date, or is not
furnished, the employer shall be liable to pay simple interest at the rate of one per cent. for every month
or part of a month comprised in the period commencing on the date immediately following the due date,
and,—
where the return is furnished after the due date, ending on the date of furnishing of the return;
or
where no return has been furnished, ending on the date of completion of the assessment under
section 115WF,
on the amount of the tax on the value of fringe benefits as determined under sub-section
of section
115WE or regular assessment as reduced by the advance tax paid under section 115WJ.
Explanation 1.—In this section, “due date” means the date specified in the Explanation to
sub-section
of section 115WD as applicable in the case of the employer.
Explanation 2.—Where, in relation to an assessment year, an assessment is made for the first time
under section 115WG, the assessment so made shall be regarded as a regular assessment for the purposes
of this section.
The provisions contained in sub-sections
to
of section 234A shall, so far as may be, apply
to this section.
533
1[115WKA. Recovery of fringe benefit tax by the employer from the employee.—
Notwithstanding anything contained in any agreement or scheme under which any specified security or
sweat equity shares referred to in clause
of sub-section
of section 115WB has been allotted or
transferred, directly or indirectly, by the employer on or after the 1st day of April, 2007, it shall be lawful
for the employer to vary the agreement or scheme under which such specified security or sweat equity
shares has been allotted or transferred so as to recover from the employee the fringe benefit tax to the
extent to which such employer is liable to pay the fringe benefit tax in relation to the value of fringe
benefits provided to the employee and determined under clause
of sub-section
of section
115WC.]
2[115WKB. Deemed payment of tax by employee.—
Where an employer has paid any fringe
benefit tax with respect to allotment or transfer of specified security or sweat equity shares, referred to in
clause
of sub-section
of section 115WB, and has recovered such tax subsequently from an
employee, it shall be deemed that the fringe benefit tax so recovered is the tax paid by such employee in
relation to the value of the fringe benefit provided to him only to the extent to which the amount thereof
relates to the value of the fringe benefit provided to such employee, as determined under clause
of
sub-section
of section 115WC.
Notwithstanding anything contained in any other provisions of this Act, where the fringe benefit
tax recovered from the employee is deemed to be the tax paid by such employee under sub-section
any refund out of such payment of tax; or
any credit of such payment of tax against tax liability on other income or against any other
tax liability.]
115WL. Application of other provisions of this Act.—Save as otherwise provided in this Chapter,
all other provisions of this Act shall, as far as may be, apply in relation to fringe benefits also.
3[115WM. Chapter XII-H not to apply after a certain date.—Nothing contained in this Chapter
shall apply, in respect of any assessment for the assessment year commencing on the 1st day of April,
2010 or any subsequent assessment year.]
CHAPTER XIII
INCOME-TAX AUTHORITIES
A.—Appointment and control
4[116. Income-tax authorities.—There shall be the following classes of income-tax authorities for
the purposes of this Act, namely:—
the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963
(54 of 1963),
5[
Principal Directors General of Income-tax or Principal Chief Commissioners of
Income-tax,]
Directors-General of Income-tax or Chief Commissioners of Income-tax,
5[
Principal Directors of Income-tax or Principal Commissioners of Income-tax,]