Clause 214 - Interest for failure to deduct or collect or pay tax. - Direct Taxes Code, 2010

Interest for failure to deduct or collect or pay tax. 214. (1) Where any person who is required to deduct or collect any tax in accordance with the provisions of this Code, does not deduct or collect the whole or any part of the tax, or after deduction fails to pay the tax, he shall be liable to pay simple interest or collection (a) at the rate of one per cent. per month on the amount of such tax for the period from the date on which such tax was deductible or collectable to the date on which such tax is deducted or collected, as the case may be; and (b) at the rate of one and one-half per cent. per month on the amount of such tax for the period from the date on which such tax was deducted or collected, as the case may be, to the date on which such tax is paid.