Section 115P of Income Tax Act for AY 2023-24

Section 115P of Income Tax Act amended by Finance Act and Income-tax Rules. Interest payable for non-payment of tax by domestic companies.

Amended and updated notes on section 115P of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Interest payable for non-payment of tax by domestic companies.

Chapter XIID(Sections 115-O to 115Q) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to tax on distributed profits of domestic companies. Section 115P of IT Act 1961-2023 provides for Interest payable for non-payment of tax by domestic companies.

Recently, we have discussed in detail section 115-O (Tax on distributed profits of domestic companies) of IT Act 1961. Today, we learn the provisions of section 115P of Income-tax Act 1961. The amended provision of section 115P is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 115P of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-115P: Interest payable for non-payment of tax by domestic companies

Where the principal officer of a domestic company and the company fails to pay the whole or any part of the tax on distributed profits referred to in sub-section (1) of section 115-O, within the time allowed under sub-section (3) of that section, he or it shall be liable to pay simple interest at the rate of one per cent for every month or part thereof on the amount of such 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.


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