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

Section 115TE of Income Tax Act 1961 amended by Finance Act 2022 and IT Rules. Interest payable for non-payment of tax by trust or institution.

Amended and updated notes on section 115TE 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 trust or institution.

Chapter XIIEB (Sections 115TD to 115TF) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to tax on accreted income of certain trusts and institutions. Section 115TE of IT Act 1961-2022 provides for Interest payable for non-payment of tax by trust or institution.

Recently, we have discussed in detail section 115TD (Tax on accreted income) of IT Act 1961.

Today, we learn the provisions of section 115TE of Income-tax Act 1961 as amended by the Finance Act 2022. The amended provision of section 115TE 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 115TE 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-115TE: Interest payable for non-payment of tax by specified person

Where the principal officer or the trustee of the specified person and the specified person fails to pay the whole or any part of the tax on the accreted income referred to in sub-section (1) of section 115TD, within the time allowed under sub-section (5) 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.

[Section 115TE amended (substituted) w.e.f. 1-April-2023 by the Finance Act 2022]

Explanation: For the purposes of this section, “specified person” shall have the same meaning as assigned to in clause (iia) of the Explanation to section 115TD.

[Explanation in section 115TE inserted w.e.f. 1-April-2023 by the Finance Act 2022]


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