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Rule 118 of Income Tax Rules 1962: Levy of interest under section 220(2)

Rule 118 : Levy of interest under section 220(2) where a recovery certificate is not issued
(Part XV : Miscellaneous)

(1) Subject to the provision of rule 119 and sub-rule (2) of this rule, the Assessing Officer shall calculate the interest payable under sub-section (2) of section 220 at the end of each financial year if the amount of tax, penalty or other sum in respect of which such interest is payable has not been paid in full before the end of any such financial year and a notice of demand under section 156 shall be issued accordingly.

(2) Subject to the provisions of rule 119, if the amount of tax, penalty or other sum in respect of which such interest is payable is paid up before the end of any financial year, the Assessing Officer shall calculate the interest payable under sub-section (2) of section 220 up to the date on which the payment of such tax, penalty or other sum is completed and a notice of demand under section 156 shall be issued accordingly.




Extra Notes for Readers:

- Rule 118 was omitted by the Income Tax (11th Amendment) Rules, 1989, w.e.f. 30th Nov. 1989



Check at Income Tax Dept. official site for latest version of the Rule.

This page was created/last updated on 17th October 2016.

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