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Payment of Tax & all Provisions

 

2.1.      PAYMENT OF TAX

A- When is Tax Payable ? [ Sec. 220(1) ]

Any amount, otherwise than by way of advance tax shall be paid within  30 [thirty] days of the service of the notice of demand. All the assesses who are served with such notices must deposit such amount which is written in the notice and at the place and to the person mentioned in the notice :

But where the Assessing Officer has any reason to believe that it will be detrimental to revenue if the full period of  30 [thirty] days is allowed, he may, with the previous approval of the Joint Commissioner , reduce the number of days which shall be less than 30 days and may be specified by him in the notice of demand.

B- Payment of Interest: [ Sec. 220(2) ]

If the amount specified in any notice of demand is not paid within the specified limit, the assessee shall be liable to pay simple interest at  1% [one] per cent for every month or part of a month.

If due to any reason the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded

C- Extension of Date : [ Sec. 220(3) ]

The Assessing Officer is empowered to extend the date of payment of tax if he is approached  by the assessee with an application before the expiry of the due date, the Assessing Officer may extend the time for payment or allow payment by installments, subject to such conditions as he may think fit to impose in the circumstances of the case. However, interest shall be charged in such a case and it will be calculated from the date specified in the notice of demand.

D- Assessee in Default : [ Sec. 220 (4) ]

The assessee shall be considered to be an Assessee in Default if he fails to pay tax within the time allowed originally or extended and to the person and place mentioned in he notice.  The assessee can not be treated as being in default unless a notice of demand has been duly served.

E- Payment of Tax in Installments: [ Sec. 220 (5) ]

If, in a case where payment by instalments is allowed, the assessee commits defaults in paying any one of the instalments within the time fixed, the assessee shall be deemed to be in default as to the whole of the amount then outstanding, and the other instalment or instalments shall be deemed to have been due on the same date as the instalment actually in default.

F- Penalty Payable when Tax is in Default : [ Sec. 221 ]

When an assessee is in default or is deemed to be in default in making a payment of tax, he shall, in addition to the amount of the arrears and the amount of interest payable, be liable, by way of penalty, to pay such amount as the Assessing Officer may direct , and in the case of a continuing default, such further amount or amounts as the Assessing Officer may, from time to time, direct, so, however, that the total amount of penalty does not exceed the amount of tax in arrears :

This Section expressly provides that before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard :

Where the Assessing Officer is satisfied that the default was for good and sufficient reasons, no penalty shall be liable under this section.

The assessee shall not cease to be liable to any penalty by reason of the fact that before the levy of such penalty he has paid the tax.

Where as a result of any final order the amount of tax, on which the penalty was levied shall be cancelled and the amount of penalty paid shall be refunded.

More Topics ...
Various Authorities
Power Of Income Tax Authorities Relating To Search And Seizure [ Section 132 ]
Application Of Seized Or Requisitioned Assets [Section132(B)]
Power Of Survey [ Section 133a ]
Provision Relating To Power To Collect Certain Information [Section 133b]
Disclosure Of Information Regarding Assessees To Certain Authorities [ Section 138 ]
Payment of Tax
Modes of recovery of Tax
Refunds
Introduction- Deduction of Tax at Source (TDS)
Deduction of Tax from the “Salary” [ Sec-192]
Deduction Of Tax From Interest On Securities [ Section-193]
Deduction Of Tax From Deemed Dividend [ Section-194]
Deduction Of Tax From Interest Other Than Interest On Securities [ Section 194A]
Winning From Lottery Or Crossword Puzzle Or Card game And Game Of Any Sort [Section 194B]
Winning From Horse Race [ Section 194BB]
Payment To Contractor And Sub-Contractor [ Section 194C]
Tax Deducted At Source From Insurance Commission [ Section 194D]
Payments To Non-Resident Sportsmen Or Sports Associations [ Section 194E]
Commission, Etc., On The Sale Of Lottery Tickets [Section 194G]
Commission Or Brokerage [ Section 194H]
Payment Of Rent [ Section 194 I ]
Fees For Professional Or Technical Services [ Section 194J]
Time Limit For Filling Return Of Income [ Section 139(1)]
When Return Of Loss Should Be Filed [ Section 139(3)]
Can Return Be Filied Beyond Time [ Section 139(4)]
Can Revised Return Be Filed [ Section 139(5)]
What Is A Defective Or Incomplete Return [ Section 139(9)]
Who Should  Sign The Return Of Income [ Section 140]
Permanent Account Number (PAN)
Why Every Person Needs Tax Planning ?
How is Tool of Tax Planning Exercised ?
Methods Of Tax Planning
Tax Avoidance
Tax Evasion
The Difference Between ‘Tax Planning’ And ‘Tax Management’
The Difference Between ‘Tax Avoidance’ And ‘Tax Evasion’.
Procedure for imposing Penalty [ Sec. 274]
Various Types Of Penalties In The Event Of Default.
Prosecutions
Salient Features Of FBT

Important Points Relating To Fringe Benefit Tax
Characteristics Of FBT
Classification Of Employer For FBT
Classification Of Not Employer For FBT
Direct Fringe Benefit
Deemed Fringe Benefit
Payment Of FBT To The Government
Filing Of FBT Return
Service Tax – Key Provisions At A Glance
Applicability Of Service Tax
Service Tax Rate
Registration Formalities
Payment & Refund Of Tax
Filling Or Returns
Assessments
Central Value Added Tax (Cenvat) Credit
Penalties & Prosecutions
Concept of VAT
Types of Dealers
General terminology used in VAT
Advantages of VAT over Sales Tax
VAT Rates
Computation of VAT and Profit
Items Covered in Indian VAT
Inter-State Sale
What are the objectives of CST Act ?
What are the conditions for CST Act to become applicable.
Rate of CST
Sale Price
CST Transactions Forms
Classification of Seller for TCS
Classification of Buyer for TCS
Goods and Transactions classified under TCS.
Certificate of TCS
TCS Exemptions
Payment of TCS to the Government
Electronic TCS (e-TCS)
Filing of TCS Returns
For removing any Asset, Books of account, documents etc. found during search in contravention of order served under [Section 132 (3)]
Removal, Concealment, transfer or delivery of property to avoid tax recovery [Section 276]
Default on the part of Liquidator [Section 276 (A)]
Failure to comply with provisions regarding transfer of immoveable property [Section 276 AB].
Failure to pay the tax deducted at source [Section 276 W]
Failure to pay the tax collected at source [Section 276 (BB)]
Willful attempt to evade Tax, Penalty, Interest etc. [Section 276 C (1)]
Failure to furnish return of income (Section 276 CC)
Failure to furnish return of income in search cases u/s 158 BC (Section 276 CCC)
Failure to produce accounts and documents [Section 276 (D)].
False Statement in Verification [Section 277]
Falsification of books of account or document, etc. [Section 277A]
Abetment in False Return (Section 278)
Punishment of Second and Subsequent Offences (Section 278 A)
Punishment not to be imposed in certain cases (Section 278 AA)
Offences by Companies (Section 278 B)
Offences by Hindu Undivided Families. (Section 278 C)
Presumption as to Assets, Books of Account etc. in certain cases. (Section 278 D)
Prosecution to be at the instance of commissioner [Section 279]
Meaning of Settlement Commisions
Setting Up Of Settlement Commission
Constitution Of Settlement Commission [Section 245B]
Jurisdiction And Powers Of Settlement Commission [Section 245BA]
Vice-Chairman To Act As Chairman [Section 245 BB]
Transfer Of Cases [Section 245 BC]
Decision To Be Majority [Section 245 BD]
Application For Settlement Of Cases [Section 245 C]
Calculation Of Additional Income-Tax [Section 245C (1A)]
Bar On Making Application [Section 245C (1E)]
Procedure On Receipt Of Application [Section 245D]
Payment Of Additional Income-Tax [Section 245D (2A)]
Power Of Settlement Commission To Order Provisional Attachment To Protect Revenue [Section 245DD (1)]
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