This discussion addresses whether interest continues to accrue on an income tax demand if the principal amount has been paid via the portal, but the interest itself has not. The consensus is that interest will continue to accrue at 1% per month. Consequently, a new demand may be raised for the accrued interest after the initial payment.
04 April 2024
In income tax proceedings if outstanding demand is paid in portal but interest is not paid then interest on such demand would accrue 1% per month or would it be stop accruing?