Amended and updated notes on section 115TB 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.
Chapter XIIEA (Sections 115TA to 115TCA) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to tax on distributed income by securitisation trusts. Section 115TB of IT Act 1961-2023 provides for Interest payable for non-payment of tax.
Recently, we have discussed in detail section 115TA (Tax on distributed income to investors) of IT Act 1961. Today, we learn the provisions of section 115TB of Income-tax Act 1961. The amended provision of section 115TB 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 115TB 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-115TB: Interest payable for non-payment of tax
Where the person responsible for making payment of the income distributed by the securitisation trust and the securitisation trust fails to pay the whole or any part of the tax referred to in sub-section (1) of section 115TA, within the time allowed under sub-section (2) of that section, he or it shall be liable to pay simple interest at the rate of one per cent 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.