Finance Act, 1971
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Amendment of section 550 of Income Tax Act, 1967. |
17.—(1) In relation to interest chargeable for any month commencing on or after the date of the passing of this Act or any part of such a month on tax due and payable whether before, on or after such date, section 550 (1) of the Income Tax Act, 1967 , is hereby amended by the substitution of “.75 per cent.” for “one half per cent.”. | |
(2) (a) Section 550 of the Income Tax Act, 1967 , is hereby further amended— | ||
(i) by the addition to subsection (1) of the following proviso: | ||
“Provided that any tax charged by any assessment to income tax or to sur-tax shall, notwithstanding any appeal against such assessment, carry interest at the rate of .75 per cent. for each month or part of a month from the date when, if there were no appeal against the assessment, the tax would become due and payable under section 477 or section 522 (2) of the Income Tax Act, 1967 , as the case may be, until payment”; | ||
(ii) by the substitution in subsection (2) of “two months” for “three months”; and | ||
(iii) by the insertion after subsection (2) of the following subsection: | ||
“(2A) (a) Where notice of appeal has been given against an assessment and an agreement as to the amount of tax which should be paid notwithstanding the appeal has been reached between the appellant and the inspector or other officer of the R Commissioners concerned under section 419 (1) and the amount so agreed has been paid within the period referred to in subsection (2), subsection (1) shall not apply to any balance of tax chargeable in accordance with the determination of the appeal if such balance is paid within two months from the date of determination of the appeal. | ||
(b) Where notice of appeal has been given against an assessment and, in the absence of such an agreement as is referred to in paragraph (a), an appellant pays within the period referred to in subsection (2) a sum on account of the tax charged by the assessment under appeal and such sum is not less than 80 per cent. of the amount of tax found to be chargeable by the assessment on the determination of the appeal, subsection (1) shall not apply to any balance of tax chargeable in accordance with the determination if such balance is paid within two months from the date of the determination of the appeal. | ||
(c) In this subsection ‘determination of the appeal’ means a determination by the Appeal Commissioners under section 416 (4) and includes an agreement referred to in section 416 (3) and an assessment becoming final and conclusive by virtue of section 416 (6).”. | ||
(b) Paragraph (a) of this subsection shall not apply in relation to assessments to income tax or sur-tax charged by any assessment made before the date of the passing of this Act. | ||
(3) Sections 418 and 529 of the Income Tax Act, 1967 , shall not apply in relation to assessments to income tax or sur-tax, as the case may be, made on or after the date of the passing of this Act. |