Section 220 of ITA, 1961 : Section 220: When Tax Payable And When Assessee Deemed In Default

Explanation using Example

Imagine a small business owner, Mr. Sharma, receives a notice of demand under Section 156 of the Income Tax Act, 1961, stating that he owes additional taxes amounting to Rs. 50,000. The notice, served on April 10, indicates that the payment is due within thirty days, which means Mr. Sharma has until May 10 to pay the tax.

However, the Assessing Officer believes that delaying payment for the full thirty days could harm the revenue collection and, with the approval of the Joint Commissioner, issues a revised notice demanding payment within fifteen days. Mr. Sharma must now pay by April 25.

Mr. Sharma fails to pay the tax by the revised due ...

Login to access all pages and read more content.

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