INCOME TAX
Clarification regarding charging of interest u/ss.
201(1A) and 220(2) of Income-tax Act
[Instruction
No. 1944 — F. No. 275/14/97-IT(B) dated 27-8-1997 issued by CBDT]
The
Central Board of Direct Taxes have received several representations seeking
clarification about the simultaneous charging of interest u/s. 201(1A) and u/s.
220(2) of the Income-tax
Act, 1961.
2. After due consideration, it is hereby clarified that for non-deduction of tax at source or failure to pay the tax after deducting the same, interest u/s. 201(1A) is chargeable. If the tax and/or interest is not paid within the stipulated time, then interest u/s. 220(2) also becomes chargeable.