805/CBDT.

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..... Rule 118 of the Income Tax Rules, 1962. According to Rule 118(1), ITO is under an obligation to calculate interest under sub-section (2) of Section 220 at the end of each financial year if the amount of tax, penalty or other sum in respect of which such interest is payable has not been paid in full before the end of any such financial year, and issue notice of demand under section 156 to the asse .....

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..... the end of the financial year i.e., upto the 30th day of April. In cases where interest has to be calculated and charged by the ITO upto the date of payment which falls prior to the 31st day of March, interest should be calculated and charged within a week of the date of final payment. 5. These instructions should be brought to the notice of all the Income Tax Officers in each charge. - Circu .....

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