Sunday, July 11, 2010

Interest Payable on Income Tax

                    In case assesses do not pay Income Tax in due time or in prescribed time by the Income Tax Department , It attracts interest on Income Tax.   Now question is that how much percentage is to be charged on late deposit of Income Tax. Simple Interest 1% per month or part thereof  will be charged as interest on late deposit of Income Tax for the period beginning on the date immediately after the last date on which such tax was payable and ending with the date on which the tax is actually paid under section 115S of Income Tax Act 1961.  This percentage (1%) every month or part thereof  is applicable w.e.f. 08.09.2003.  Earlier before 08.09.2003, one plus one-fourth percentage (1.25%)  was applicable on every month or part thereof. 

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