83[Interest for deferment of advance tax.
234C. (1) 84[Where in any financial
year,—
(a) the company which is liable to pay advance tax
under section 208 has failed to pay such tax or—
(i) the advance tax paid by the company on its
current income on or before the 15th day of June is less than fifteen per cent
of the tax due on the returned income or the amount of such advance tax paid on
or before the 15th day of September is less than forty-five per cent of the tax
due on the returned income or the amount of such advance tax paid on or before
the 15th day of December is less than seventy-five per cent of the tax due on
the returned income, then, the company shall 85 be liable to pay simple
interest at the rate of 86[one] per cent per month
for a period of three months on the amount of the shortfall from fifteen per cent
or forty-five per cent or seventy-five per cent, as the case may be, of the tax
due on the returned income;
(ii) the advance tax paid by the company on its
current income on or before the 15th day of March is less than the tax due on
the returned income, then, the company shall be liable to pay simple interest
at the rate of 86[one] per cent on the
amount of the shortfall from the tax due on the returned income:
Provided that if the advance
tax paid by the company on its current income on or before the 15th day of June
or the 15th day of September, is not less than twelve per cent or, as the case
may be, thirty-six per cent of the tax due on the returned income, then, it
shall not be liable to pay any interest on the amount of the shortfall on those
dates;
(b) the assessee, other than a company, who is
liable to pay advance tax under section 208 has
failed to pay such tax or,—
(i) the advance tax paid by the assessee on his
current income on or before the 15th day of September is less than thirty per
cent of the tax due on the returned income or the amount of such advance tax
paid on or before the 15th day of December is less than sixty per cent of the
tax due on the returned income, then, the assessee shall be liable to pay
simple interest at the rate of 86[one] per cent per month
for a period of three months on the amount of the shortfall from thirty per
cent or, as the case may be, sixty per cent of the tax due on the returned
income;
(ii) the advance tax paid by the assessee on his
current income on or before the 15th day of March is less than the tax due on
the returned income, then, the assessee shall be liable to pay simple interest
at the rate of 86[one] per cent on the
amount of the shortfall from the tax due on the returned income :]
87[Provided that nothing contained in this
sub-section shall apply to any shortfall in the payment of the tax due on the
returned income where such shortfall is on account of under-estimate or failure
to estimate—
(a) the amount of capital gains; or
(b) income of the nature referred to in sub-clause
(ix) of clause (24) of section 2,
and the assessee has paid
the whole of the amount of tax payable in respect of income referred to in
clause (a) or clause (b), as the case may be, had such income
been a part of the total income, as part of the 88[remaining
instalments of advance tax which are due or where no such instalments are due],
by the 31st day of March of the financial year:]
89[Provided further that nothing contained in
this sub-section shall apply to any shortfall in the payment of the tax due on
the returned income where such shortfall is on account of increase in the rate
of surcharge under section 2 of the Finance Act, 2000 (10 of 2000), as amended
by the Taxation Laws (Amendment) Act, 2000 (1 of 2001), and the assessee has
paid the amount of shortfall, on or before the 15th day of March, 2001 in
respect of the instalment of advance tax due on the 15th day of June, 2000, the
15th day of September, 2000 and the 15th day of December, 2000 :]
90[Provided also that nothing contained in
this sub-section shall apply to any shortfall in the payment of the tax due on
the returned income where such shortfall is on account of increase in the rate
of surcharge under section 2 of the Finance Act, 2000 (10 of 2000) as amended
by the Taxation Laws (Amendment) Act, 2001 (4 of 2001) and the assessee has
paid the amount of shortfall on or before the 15th day of March, 2001 in
respect of the instalment of advance tax due on the 15th day of June, 2000, the
15th day of September, 2000 and 15th day of December, 2000.]
91[Explanation.—In this section, “tax due on the returned
income” means the tax chargeable on the total income declared in the return of
income furnished by the assessee for the assessment year commencing on the 1st
day of April immediately following the financial year in which the advance tax
is paid or payable, as reduced by the amount of,—
(i) any tax deductible or collectible at source in
accordance with the provisions of Chapter XVII on any income which is subject
to such deduction or collection and which is taken into account in computing
such total income;
(ii) any relief of tax allowed under section 90 on account of tax paid in a country outside
India;
(iii) any relief of tax allowed under section 90A on account of tax paid in a specified
territory outside India referred to in that section;
(iv) any deduction, from the Indian income-tax payable,
allowed under section 91, on account of tax paid in
a country outside India; and
(v) any tax credit allowed to be set off in
accordance with the provisions of section 115JAA.]
(2) 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.]]
