Income Tax Act, 2025
Section 2: Ins. by s. 94, ibid. (w.e.f. 11989).
2. Ins. by s. 94, ibid. (w.e.f. 11989).
3. Subs. by Act 54 of 2003, s. 12, for “one and one-fourth per cent.” (w.e.f. 82003). Earlier substitution by Act 27 of
1999, s. 81 (w.e.f. 11999).
4. Subs. by Act 21 of 2006, s. 48, for "on the amount of the tax on the total income as determined under sub-section (1) of
section 143 or on regular assessment as reduced by the advance tax, if any, paid and any tax deducted or collected at
source" (w.e.f. 12007).Earlier were amended by 3 of 1989, s. 38 (w.e.f. 11989).
692
(vi) any tax credit allowed to be set off in accordance with the provisions of section
115JAA 1[or section 115JD].]
Explanation 1.—In this section, “due date” means the date specified in sub-section (1) of section
139 as applicable in the case of the assessee.
2[Explanation 2.—In this sub-section, "tax on the total income as determined under sub-section (1)
of section 143" shall not include the additional income-tax, if any, payable under section 143.]
Explanation 3.—Where, in relation to an assessment year, an assessment is made for the first time
3[under section 147 or section 153A], the assessment so made shall be regarded as a regular assessment
for the purposes of this section.
4* * * * *
(2) The interest payable under sub-section (1) shall be reduced by the interest, if any, paid
under section 140A towards the interest chargeable under this section.
(3) Where the return of income for any assessment year, required 3[by a notice under section
148 or section 153A] issued 5[after the determination of income under sub-section (1) of section 143 or]
after the completion of an assessment under sub-section (3) of section 143 or section 144 or section 147,
is furnished after the expiry of the time allowed under such notice, or is not furnished, the assessee shall
be liable to pay simple interest at the rate of 6[one per cent.] for every month or part of a month comprised
in the period commencing on the day immediately following the expiry of the time allowed as aforesaid,
and,—
(a) where the return is furnished after the expiry of the time aforesaid, ending on the date of
furnishing the return; or
(b) where no return has been furnished, ending on the date of completion of the reassessment or
recomputation under section 147 7[or reassessment under section 153A],
on the amount by which the tax on the total income determined on the basis of such reassessment or
recomputation exceeds the tax on the total 8[income determined under sub-section (1) of section 143 or on
the basis of the earlier assessment aforesaid].
9* * * * *
(4) 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 263 or section 264 or an order of the Settlement Commission
under sub-section (4) of section 245D, the amount of tax on which interest was payable under sub-section
(1) or sub-section (3) of this section 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 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.
(5) The provisions of this section shall apply in respect of assessments for the assessment year
commencing on the 1st day of April, 1989 and subsequent assessment years.]
of
section 143 or on regular assessment as reduced by the advance tax, if any, paid and any tax deducted or collected at
source" (w.e.f. 12007).Earlier were amended by 3 of 1989, s. 38 (w.e.f. 11989).
692
any tax credit allowed to be set off in accordance with the provisions of section
115JAA 1[or section 115JD].]
Explanation 1.—In this section, “due date” means the date specified in sub-section
of section
139 as applicable in the case of the assessee.
2[Explanation 2.—In this sub-section, "tax on the total income as determined under sub-section
of section 143" shall not include the additional income-tax, if any, payable under section 143.]
Explanation 3.—Where, in relation to an assessment year, an assessment is made for the first time
3[under section 147 or section 153A], the assessment so made shall be regarded as a regular assessment
for the purposes of this section.
4* * * * *
The interest payable under sub-section
shall be reduced by the interest, if any, paid
under section 140A towards the interest chargeable under this section.
Where the return of income for any assessment year, required 3[by a notice under section
148 or section 153A] issued 5[after the determination of income under sub-section
of section 143 or]
after the completion of an assessment under sub-section
of section 143 or section 144 or section 147,
is furnished after the expiry of the time allowed under such notice, or is not furnished, the assessee shall
be liable to pay simple interest at the rate of 6[one per cent.] for every month or part of a month comprised
in the period commencing on the day immediately following the expiry of the time allowed as aforesaid,
and,—
where the return is furnished after the expiry of the time aforesaid, ending on the date of
furnishing the return; or
where no return has been furnished, ending on the date of completion of the reassessment or
recomputation under section 147 7[or reassessment under section 153A],
on the amount by which the tax on the total income determined on the basis of such reassessment or
recomputation exceeds the tax on the total 8[income determined under sub-section
of section 143 or on
the basis of the earlier assessment aforesaid].
9* * * * *
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 263 or section 264 or an order of the Settlement Commission
under sub-section
of section 245D, the amount of tax on which interest was payable under sub-section
or sub-section
of this 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 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.
The provisions of this section shall apply in respect of assessments for the assessment year
commencing on the 1st day of April, 1989 and subsequent assessment years.]