Clause 56 - Amendment of section 234B. - Finance Bill, 2015

Amendment of section 234B. 56. In section 234B of the Income-tax Act, with effect from the 1st day of June, 2015,- (i) after sub-section (2), the following sub-section shall be inserted, namely:- (2A) (a) Where an application under sub-section (1) of section 245C for any assessment year has been made, the assessee shall be liable to pay simple interest at the rate of one per cent. for every month or part of a month comprised in the period commencing on the 1st day of April of such assessment year and ending on the date of making such application, on the additional amount of income-tax referred to in that sub-section. (b) Where as a result of an order of the Settlement Commission under sub-section (4) of section 245D for any assessment year, the amount of total income disclosed in the application under sub-section (1) of section 245C is increased, the assessee shall be liable to pay simple interest at the rate of one per cent. for every month or part of a month comprised in the period commencing on the 1st day of April of such assessment year and ending on the date of such order, on the amount by which the tax on the total income determined on the basis of such order exceeds the tax on the total income disclosed in the application filed under sub-section (1) of section 245C. ; (ii) for sub-section (3), the following sub-section shall be substituted, namely:- (3) Where, as a result of an order of reassessment or re-computation under section 147 or section 153A, the amount on which interest was payable in respect of shortfall in payment of advance tax for any financial year under sub-section (1) is increased, the assessee shall be liable to pay simple interest at the rate of one per cent. for every month or part of a month comprised in the period commencing on the 1st day of April next following such financial year and ending on the date of the reassessment or recomputation under section 147 or section 153A, on the amount by which the tax on the total income determined on the basis of the reassessment or recomputation exceeds the tax on the total income determined under subsection (1) of section 143 or on the basis of the regular assessment as referred to in subsection (1), as the case may be. ; (iii) in sub-section (4), the words, brackets, figures and letter or an order of the Settlement Commission under sub-section (4) of section 245D shall be omitted.