- [(1) Where, in any financial year, an assessee has paid ] [Substituted by Act 14 of 1969, Section 18, for sub-Section (1) (w.e.f. 1.4.1970).][advance tax under section 209-A or section 212 on the basis of his own estimate (including revised estimate)] [ Substituted by Act 19 of 1978, Section 27, for " advance tax under section 212 on the basis of his own estimate" (w.e.f. 1.6.1978).][, and the advance tax so paid is less than seventy-five per cent. of the assessed tax, simple interest at the rate of ] [Substituted by Act 14 of 1969, Section 18, for sub-Section (1) (w.e.f. 1.4.1970).][fifteen per cent.] [ Substituted by Act 67 of 1984, Section 24, for " twelve per cent." (w.e.f. 1.10.1984).][per annum from the 1st day of April, next following the said financial year up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax so paid falls short of the assessed tax: ] [Substituted by Act 14 of 1969, Section 18, for sub-Section (1) (w.e.f. 1.4.1970).][Provided that in the case of an assessee, being a company, the provisions of this sub-section shall have effect as if for the words "seventy-five per cent.", the words "eighty-three and one-third per cent." had been substituted.] [ Inserted by Act 44 of 1980, Section 32 (w.e.f. 1.9.1980).](2)[ Where before the date of completion of a regular assessment, tax is paid by the assessee under section 140-A or otherwise,-(i)interest shall be calculated in accordance with the foregoing provision up to the date on which the tax is so paid; and(ii)thereafter, interest shall be calculated at the rate aforesaid on the amount by which the tax as so paid (in so far as it relates to income subject to advance tax) falls short of the assessed tax.](3)[ Where as a result of an order under section 147 or section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 ] [Substituted by Act 67 of 1984, Section 36, for sub-Section (3) (w.e.f. 1.4.1985).][or an order of the Settlement Commission under sub-section (4) of section 245-D] [ Inserted by Act 4 of 1988, Section 83 (w.e.f. 1.4.1989).] [, the amount on which interest was payable under sub-section (1) 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] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] [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; [Substituted by Act 67 of 1984, Section 36, for sub-Section (3) (w.e.f. 1.4.1985).](ii)in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.](4)In such cases and under such circumstances as may be prescribed, the [Assessing Officer] [Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] may reduce or waive the interest payable by the assessee under this section.(5)[ In this section and sections 217 and 273, "assessed tax", means the tax determined on the basis of the regular assessment (reduced by the amount of tax deductible in accordance with the provisions of sections 192 to 194, ] [Inserted by Act 14 of 1969, Section 18 (w.e.f. 1.4.1970).][section 194-A,] [ Substituted by Act 16 of 1972, Section 38, for " section 194-A" (w.r.e.f. 1.4.1972).] [section 194-C, section 194-D,] [ Inserted by Act 21 of 1973, Section 19 (w.r.e.f. 1.4.1973).][section 195 and section 196-A)] [ Substituted by Act 3 of 1989, Section 33, for " and section 195" (w.e.f. 1.4.1989).] [so far as such tax relates to income subject to advance tax and so far as it is not due to variations in the rates of tax made by the Finance Act enacted for the year for which the regular assessment is made.] [Inserted by Act 14 of 1969, Section 18 (w.e.f. 1.4.1970).](6)[ Where, in relation to an assessment year, an assessment is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purposes of this section and sections 216, 217 and 273.] [ Inserted by Act 67 of 1984, Section 35 (w.e.f. 1.4.1985).]
