CHAPTER XIX

COLLECTION AND RECOVERY OF TAX

Interest for defaults in payment of advance tax

427.(1) Without prejudice to the provisions of this Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in section 397(3)(b),he shall be liable to pay, by way of fee, a sum of ?200for every day during which the failure continues. (2)The amount of fee referred to in sub-section (1) shall,– (a)not exceed the amount of tax deductible or collectible; and (b)be paid before delivering or causing to be delivered the statement, as per sub-section (1).

1.Substituted by The Finance Bill 2026 dated 01.02.2026 w.e.f. 01.04.2026

For the Word

(f)any tax credit allowed to be set off as per sections 206(1)(m) to (p) and 206(2)(e) to (h).
Shall be Substituted namely:

“(f) any tax credit allowed to be set off as per sections 206(2)(e) to (h) and 206(3) and (4) "