Amended and updated notes on section 115QB of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Interest payable for non-payment of tax by company.
Chapter XIIDA(Sections 115QA to 115QC) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to tax on distributed income of domestic company for buy-back of shares. Section 115QB of IT Act 1961-2023 provides for Interest payable for non-payment of tax by company.
Recently, we have discussed in detail section 115QA (Tax on distributed income to shareholders) of IT Act 1961. Today, we learn the provisions of section 115QB of Income-tax Act 1961. The amended provision of section 115QB is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 115QB of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section-115QB: Interest payable for non-payment of tax by company
Where the principal officer of the domestic company and the company fails to pay the whole or any part of the tax on the distributed income referred to in sub-section (1) of section 115QA, within the time allowed under sub-section (3) of that section, he or it shall be liable to pay simple interest at the rate of one per cent for every month or part thereof on the amount of such tax for the period beginning on the date immediately after the last date on which such tax was payable and ending with the date on which the tax is actually paid.