Interest payable for the non-payment of tax by domestic companies

When the chief executive of a domestic firm fails to pay the full or any portion of the tax on distributed profits mentioned in subsection (1) of section 115-O within the time allotted under subsection (3) of that section, he or she will be responsible for paying simple interest at the rate of 1% for each month or portion of that month on the quantity of such tax for the period starting on the date immediately following the last date on which such tax was paid. You should have a glance on an article on 80g donation.

Domestic Company refers to an Indian company or any other company that has established the necessary arrangements for the proclamation and payment of dividends (including distributions on preferred stock) payable out of income subject to tax under this Act, within India. A taxpayer who must have their accounts audited by an accountant in accordance with Section 44AB and who is subject to an obligatory audit under any other legislation to be provided by September 30th of the Assessment Year, or earlier.

A report from a professional accountant is needed under section 92E for taxpayers who engage in specific domestic or foreign transactions to be sent at least one month before the 31st of October of the Assessment Year, which is the deadline for making a return under section 139(1).

 

When a company is deemed to be in default:

 

Any principal officer of a domestic firm and the company will be deemed to be in default with regard to the amount of tax due and will be subject to all provisions of this Act for the acquisition and recovery of income tax if they fail to pay tax on decentralised profits in accordance with the requirements of section 115-O. Dividends have the same meaning as "dividend" as defined in clause (22) of section 2 for the purposes of this Chapter, but sub-clause (e) thereof is excluded.

 

When a company is deemed to be an assessee in default:

 

Any primary officer of a domestic firm and the company will be deemed to be in default with regard to the amount of tax due and will be subject to all provisions of this Act for the acquisition and restoration of income tax if they fail to pay tax on decentralised income in accordance with the requirements of section 115QA.

 

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