(1)The Central Government shall pay simple interest at [fifteen per cent.] [ Substituted by Act 67 of 1984, Section 24, for " twelve per cent." (w.e.f. 1.10.1984).] per annum on the amount by which the aggregate sum of any instalments of advance tax paid during any financial year in which they are payable under sections 207 to 213 exceeds the amount of the [assessed tax] [ Substituted by Act 67 of 1984, Section 35, for " tax determined on regular assessment" (w.e.f. 1.4.1985).], from the 1st day of April, next following the said financial year to the date of the regular assessment for the assessment year immediately following the said financial year, and where any such instalment is paid after the expiry of the financial year, during which it is payable by reason of the provisions of section 213, interest as aforesaid shall also be payable on that instalment from the date of its payment to the date of regular assessment:[Provided that in respect of any amount refunded on a provisional assessment under section 141-A, no interest shall be paid for any period after the date of such provisional assessment.] [ Inserted by Act 19 of 1968, Section 16 (w.r.e.f. 1.4.1968).][(1-A) 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 35, for sub-Section (1-A) (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 82 (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 in a case where the interest is reduced, the ] [ Substituted by Act 67 of 1984, Section 35, for sub-Section (1-A) (w.e.f. 1.4.1985).][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 amount of the excess interest payable and requiring him to pay such amount; 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 35, for sub-Section (1-A) (w.e.f. 1.4.1985).]
