Section 215 of ITA, 1961 : Section 215: Interest Payable By Assessee

Explanation using Example

Imagine Mr. Sharma, a salaried employee, also earns income from freelance consulting. For the financial year 2022-2023, he estimates his tax liability to be ₹1,00,000 and pays this as advance tax based on his own calculations. However, when he files his tax return, it turns out his actual tax liability is ₹1,50,000. Since the advance tax paid by Mr. Sharma (₹1,00,000) is less than 75% of the assessed tax (₹1,50,000), he is liable to pay interest on the shortfall.

According to Section 215 of the Income-tax Act, Mr. Sharma must pay simple interest at 15% per...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.