Notice under section 220 and 221(1) of the Income Tax Act, 1961

Notice under section 220 and 221(1) of the Income Tax Act, 1961

If any person does not remit outstanding tax money, penalty, fine or interest within the specified time period than the person is deemed to be an assessee in default and liable to pay Interest under section 220 of the Income tax Act 1961 @ 1% p.m. or part of month and Penalty may also be levied under section 221 of the Income tax Act 1961 in case of continuing default, both the said Interest and penalty are over and above the outstanding dues. Accordingly, Notice under the said sections 220 of the Income tax Act, 1961 is issued to the person for the payment of Interest and if the Income tax Officer is satisfied that penalty under section 221 should also be levied than before levying said penalty, notice under section 221(1) will be issued to the person to submit good and sufficient reasons for default of payment of outstanding dues.

Frequently Asked Questions