73. Interest payable by the assessee on deficiency in payment of advance tax.-
1[(1) Where in any financial year advance tax paid by an assessee together with the tax deducted or collected at source, if any, under this Chapter is less than seventy-five percent (75%) of the amount of tax payable by him as determined on regular assessment, the assessee shall pay, in addition to the balance of tax payable by him, simple interest at the rate of ten percent (10%) per annum on the amount by which the tax so paid, deducted and collected falls short of the seventy five percent(75%) of the assessed tax:
Provided that the rate of interest shall be fifty percent (50%) higher if the return is not filed on or before the Tax Day.
(2) The period for which the interest under sub-section (1) is payable shall be the period from the first day of July next following the financial year in which the advance tax was applicable to the date of regular assessment in respect of the income of that year or a period of two years from the said first day of July, whichever is shorter.
(3) Notwithstanding anything contained in sub-sections (1) and (2) where-
(a) tax is paid under section 74; or
(b) provisional assessment has been made under section 81 but regular assessment has not been made, the simple interest shall be calculated in accordance with the following provisions-
(i) up to the date or dates on which tax under section 74 or as provisionally assessed, was paid;
(ii) thereafter, such simple interest shall be calculated on the amount by which the tax so paid falls short of the said seventy five percent(75%) of the assessed tax
(4) Where as a result of appeal, revision or reference the amount on which interest was payable under sub-section(1) has been reduced, the amount of interest payable shall be reduced accordingly and the excess interest paid, if any, shall be refunded together with the amount of tax that is refundable.
Explanation.-For the removal of doubts, it is hereby declared that in this section, “regular assessment” includes 2[the acceptance of revised return or the assessment made as a result of the audit under section 82BB(7)]
1 Subs. by F.A 2016
2 Subs. by F.A 2017
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