Report No. 12
230. Interest payable when tax in default.-
(1) 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, be liable to pay, by way of penalty, simple interest from the date of default to the date of payment at the rate of ten per cent, per annum on the amount of arrears.
(2) If the arrears of tax are paid within three months from the due date, the interest by way of penalty levied or leviable thereon under sub-section (1) shall be remitted.
(3) No Interest shall be charged under sub-section (1 in respect of any period for which the assesse is, by virtue of any provision of this act, treated as not in default.