(1)Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent. of the assessed tax, the assessee shall be liable to pay simple interest at the rate of ] [ Substituted by Act 32 of 2003, Section 86, for sub-Section (1) (w.e.f. 1.6.2003).][one per cent.] [ Substituted by Act 54 of 2003, Section 13, for " one and one-fourth per cent." (w.r.e.f. 8.9.2003).][for every month or part of a month comprised in the period from the 1st day of April next following such financial year ] [ Inserted by Act 4 of 1988, Section 94 (w.e.f. 1.4.1989).] [to the date of determination of total income under sub-section (1) of section 143 ] [ Substituted by Act 3 of 1989, Section 39, for " to the date of the regular assessment" (w.e.f. 1.4.1989).][and where a regular assessment is made, to the date of such regular assessment, on an amount equal] [ Substituted by Act 22 of 1995, Section 42, for " or regular assessment on an amount" (w.r.e.f. 1.4.1989).][to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax.] [ Inserted by Act 4 of 1988, Section 94 (w.e.f. 1.4.1989).][Explanation 1. - In this section, "assessed tax" means the tax on the total income determined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of,-(i)any tax deducted or collected 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 90-A 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 115-JAA.][Explanation 2. - Where in relation to an assessment year, an assessment is made for the first time ] [ Inserted by Act 4 of 1988, Section 94 (w.e.f. 1.4.1989).][under section 147 or section 153-A] [ Substituted by Act 32 of 2003, Section 90, for " under section 147" (w.e.f. 1.6.2003).][, the assessment so made shall be regarded as a regular assessment for the purposes of this section.] [ Inserted by Act 4 of 1988, Section 94 (w.e.f. 1.4.1989).]Explanation 3.—In Explanation 1 and in sub-section (3),—(i)"tax on total income as determined under sub-section (1) of section 143" shall not include the additional income-tax, if any, payable under section 140B or section 143; and(ii)tax on the total income determined under such regular assessment shall not include the additional income-tax payable under section 140B.]
