Section 115P - Interest payable for non-payment of tax by domestic companies - Income-tax Act, 1961

Interest payable for non-payment of tax by domestic companies. 115P. Where the principal officer of a domestic company and the company fails to pay the whole or any part of the tax on distributed profits referred to in sub-section (1) of section 115-O, 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 1 [ 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. ----------------------- Notes :- 1. Substituted for "one and one-fourth" by the Taxa tion Laws (Amendment) Act, 2003, w.e.f. 8-9-2003. Earlier the quoted words were amended by the Finance Act, 2000, w.e.f. 1-6-2000 and Finance Act, 2001, w.e.f. 1-6-2001.