Interest

Section	Circumstances under which payable	Amount on which payable	Rate of Interest	Period of interest
A. PAYABLE BY THE ASSESSEE
115P	Failure to pay the whole or any part of the tax on distributed profit	Amount payable as tax on distributed profit	1% p.m. or part thereof comprised in the period of default	From due date on which such tax was payable, to the date on which it is actually paid
115QB	Failure to pay whole or any part of tax on distributed income u/s. 115QA (Buy-back of shares)	Amount payable as tax on distributed profit	1% p.m. or part thereof comprised in the period of default	From due date on which such tax was payable, to the date on which it is actually paid
115S	Failure to pay the whole or any part of the tax on income distributed by UTI/Mutual funds	Amount payable as tax on income distributed	1% p.m. or part thereof comprised in the period of default	From due date on which such tax was payable, to the date on which it is actually paid
115TB	Failure to pay whole or any part of tax on income distributed by a Securitisation Trust u/s. 115TA	Amount payable as tax on distributed profit	1% p.m. or part thereof comprised in the period of default	From due date on which such tax was payable, to the date on which it is actually paid
115TE	Failure to pay whole or any part of tax on accreted income of the trust or institution u/s. 115TD	Amount payable as tax on accreted income	1% p.m. or part thereof comprised in the period of default	From due date on which such tax was payable, to the date on which it is actually paid
115WJ	Failure to pay/deferment of advance tax on fringe benefits	Shortfall/Non-payment of fringe benefits tax for any quarter	1% p.m. or part thereof comprised in the period of default	From due date on which advance tax is payable till the time shortfall continues
115WK	Defaults in furnishing return of fringe benefit u/ss. 115WD(1), 115WD(3) or 115WD(2)	Tax on value of fringe benefits as determined u/s. 115WE(1) or on regular assessment, as reduced by advance tax paid	1% p.m. or part thereof comprised in the period of default	From the date immediately following the due date [specified u/s. 115WD(1)] to the date of furnishing of the return or as the case may be, the date of completion of the assessment u/s. 115WF
201(1A)	Failure to deduct tax, wholly or in part (w.e.f. 1-7-2010)	Amount of tax not deducted	1% p.m. or part of a month	From the date on which tax was deductible to the date on which such tax is deducted
201(1A)	Delay in payment of tax deducted at source (w.e.f. 1-7-2010)	Amount of tax deducted and paid after the due date	1.5% p.m. or part of a month	From the date on which tax was deducted to the date on which such tax is actually paid
206C(7)	Failure to collect, or delay in remitting tax collected from the business of trading in alcoholic liquor, forest produce, scrap, etc.	Amount of tax not collected or if collected paid after the due date	1% p.m.	From the date on which tax was collectible to the date on which the tax is actually paid
220(2)	Failure, or delay in payment of any amount other than advance tax, as demanded u/s. 156	Amount specified in the demand notice issued u/s. 156	1% p.m. or part thereof comprised in the period of default	From the day immediately following the end of the period mentioned in S. 220(1) up to the date of payment
234A	Defaults in furnishing return of income u/ss. 139(1), 139(4), 142(1)	Tax on total income as determined u/s. 143(1) or on regular assessment, as reduced by advance tax paid, TDS or TCS. (for purpose of interest payable u/s. 140A, the tax on total income as declared in the return)	1% p.m. or part thereof or comprised in the period of default	From the date immediately following the due date [specified u/s. 139(1)] to the date of furnishing of the return or as the case may be, the date of completion of the assessment u/s. 144
234B	Defaults in payments of advance tax where: No advance tax is paid u/s. 208, or Advance tax paid u/s. 210 is less than 90% of the assessed tax [i.e., for purposes of interest payable u/s. 140A, the tax on total income declared in the return of income and for other purposes, the tax on total income as determined u/s. 143(1) or on regular assessment (as reduced by TDS or TCS)]	Assessed tax, or as the case may be, the amount by which the advance tax paid falls short of the assessed tax	1% p.m. or part thereof comprised in the period of default	From 1st day of April of the relevant A.Y. to the date of determination of total income u/s. 143 (1) or regular assessment
234C	Failure to pay/deferment of advance-tax	a. Shortfall/Non-payment of prescribed instalments b. Shortfall of advance tax paid-up to 15th March from tax (one month) due on returned income	1% p.m. or part thereof comprised in the period of default.1% p.m. or part thereof for one month	Three months in either case. If capital gains arises after any of due dates of instalments of advance tax, capital gains tax shall be paid in instalments falling due subsequent to date of gain. It is not necessary to pay entire tax on or before due date immediately following the gain Shortfall not applicable in case of dividends received u/s 115BBDA
234C	Failure to pay/deferment of advance tax in case of eligible assessee referred to in section 44AD NEWLY INSERTED (Also applicable in case of eligible assessee referred to in section 44ADA)	Shortfall of advance tax paid- up to 15th March from tax due on returned income	1% w.e.f. 1-6-2016
234D	Interest on excess refund (w.e.f. 1-6-2003)	Amount refunded u/s. 143(1) exceeds amount refundable on regular assessment	0.50% p.m.	For every month or part of month from the date of grant of refund to date of regular assessment
234E	Default/delay in filing E-TDS statements within time prescribed u/ss. 200(3)/206C(3) (w.e.f. 1-7-2012)	Levy of fees not to exceed tax deductible/collectible	₹ 200 per day	From the due date till the date the default continues
234F	Default/delay in filing return of income u/s. 139 (w.e.f. 1-4-2018)	Levy of fees- a. Rs. 5000 (If the return is filed on or before 31st December of AY) b. Rs. 10,000 (In any other case.)
B. RECEIVABLE BY THE ASSESSEE
244A up to 31st May 2016	Refunds arising on account of excess payment of advance tax or TDS or TCS or refund arising on appeal, refund of fringe benefit tax, etc.	Amount of refund due, provided it is not less than 10% of tax determined u/s. 143(1) or 115WE(1) or on regular assessment	0.67% p.m. or part thereof w.e.f. 1-6-2002 0.50% p.m. or part thereof w.e.f. 8-9-2003	From the 1st of April of the relevant assessment year to the date on which refund is granted or from the date of payment of taxes or penalties to the date on which refund is granted as the case may be
244A w.e.f 1st June, 2016	Where the return of income is filed on or before the due date of filing the return of income Where the return of income is filed after the due date of filing the return of income Where refund is arising out of self-assessment tax paid	Amount of refund due provided it is not less than 10% of tax determined under section 143(1) or on regular assessment As stated above As stated above	0.5% p.m. or part thereof 0.5% p.m. or part thereof 0.5% p.m. or part thereof	From 1st April of the assessment year till the date of grant of refund From the date of filing of return till the date of grant of refund 0.5% from the date of furnishing of return of income or payment of self-assessment tax wherever is later, till the date of grant of refund
244A (1A)	Refunds arising on account of giving effect to an order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264	Amount of refund calculated in the order.	In addition to regular interest as stated above, additional interest @ 3% p.a. w.e.f. 1-6-2016	From date of expiry of time allowed u/s. 153(5) to the date of grant of refund
244A(1B)	Refunds arising on account of giving effect to an order under section 250 or section 254 or section 260 or section 262 (paid to the credit of the Central Government)	Amount of refund calculated in the order.	In addition to the said amount simple interest @ 0.5 % p.m. or part thereof	From the date on which claim for refund is made in prescribed form to the date on which the refund is granted.

Notes : Procedure for calculating interest (Rule 119A)

Where annual rate is provided, the fraction of the month is to be ignored.
Where monthly rate is provided, the fraction of the month is to be considered as full month.
Principal amount of tax, penalty or other sum must be rounded off to nearest of ₹100/- and any fraction of ₹100/- shall be ignored.
Where interest is charged for any period under section 206C(7) on the tax amount specified in the intimation issued under section 206CB (1), then, no interest shall be charged under section 220(2) on the same amount for the same period.
In respect of assessment completed under section 147 or section 153A interest under section 234B is to be computed from the 1st day of April next following the relevant financial year (for which assessment has been completed) to the date of determination of total income under section 147 or section 153A as the case may be.
Where an assessee makes an application to Settlement Commission for any assessment year, he shall be liable to pay interest under section 234B for period commencing from 1st day of April of the relevant assessment year to date of application, on additional amount of income-tax disclosed in application. Further, if the liability of tax is increased pursuant to the order of Settlement Commission, then the assessee shall be liable to pay interest from 1st day of April of relevant assessment year to date of order of Settlement Commission.