Interest on Penalty u/s 271(1)(c)
This query is : Resolved
Hitendra K. Agrawal
(Querist)
26 May 2009
We have filled an appeal in Form No. 35 against the order of Dy. Comm. of I. Tax u/s 271(1)(c),
Now we have asked for stay for the payment of the penalty u/s 271(1)(c)
The Dy. Comm. of I. Tax. has garanted 50% stay and give installments for payments of 50% of penalty.
The first installments were due on 25/05/2009 ,
Now my questions is whether interest is required to pay on the late payments of aforsaid penalty, if yes on what amount and for what period and under what section.
Now we have asked for stay for the payment of the penalty u/s 271(1)(c)
The Dy. Comm. of I. Tax. has garanted 50% stay and give installments for payments of 50% of penalty.
The first installments were due on 25/05/2009 ,
Now my questions is whether interest is required to pay on the late payments of aforsaid penalty, if yes on what amount and for what period and under what section.
Ratan Sharma
(Expert)
26 May 2009
Hi
Interest is payable on the late payment of demand. Whether its a penalty or tax there is no difference. Interest is payable u/s. 220(1). Once the demand is created u/s. 156 then the amount due has to be paid within due date i.e. 30 days. Calculate interest on the amount outstanding after 30 days on installment basis i.e. upto how many months the outstanding is not paid considering the amount of installment paid inbetween.
Interest is payable on the late payment of demand. Whether its a penalty or tax there is no difference. Interest is payable u/s. 220(1). Once the demand is created u/s. 156 then the amount due has to be paid within due date i.e. 30 days. Calculate interest on the amount outstanding after 30 days on installment basis i.e. upto how many months the outstanding is not paid considering the amount of installment paid inbetween.
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