Section 26 - Amendment of section 201 - Finance Act, 1966

26. Amendment of section 201 In section 201 of the Income-tax Act,- (a) in sub-section (1), in the proviso, for the word wilfully , the words without good and sufficient reasons shall be substituted; (b) after sub-section (1), the following sub-section shall be inserted, namely:- (1A) Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest at six per cent. per annum on the amount of such tax from the date on which such tax was deductible to the date on which such tax is actually paid. ; (c) in sub-section (2), for the words it shall be a charge , the words, brackets, figure and letter the amount of the tax together with the amount of simple interest thereon referred to in sub-section (1A) shall be a charge shall be substituted.