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

Section 115S of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Interest payable for non-payment of tax.

Amended and updated notes on section 115S 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.

Chapter XIIE(Sections 115R to 115T) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to tax on distributed income. Section 115S of IT Act 1961-2022 provides for Interest payable for non-payment of tax.

Recently, we have discussed in detail section 115R (Tax on distributed income to unit holders) of IT Act 1961. Today, we learn the provisions of section 115S of Income-tax Act 1961. The amended provision of section 115S 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 115S 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-115S: Interest payable for non-payment of tax

Where the person responsible for making payment of the income distributed by the specified company as referred to in clause (h) of section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002) or a Mutual Fund and the specified company or the Mutual Fund, as the case may be, fails to pay the whole or any part of the tax referred to in sub-section (1) or sub-section (2) of section 115R, 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 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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