SHORT ANSWER:
Interest on late tax payment is charged under the Income Tax Act for delayed payment of taxes.
DETAILS:
- The interest is calculated at 1% per month or part of the month on the amount of tax due.
- The interest is applicable from the due date of payment until the date of actual payment.
PUNISHMENT / IMPLICATIONS (if applicable):
- Failure to pay taxes on time may lead to additional penalties and legal action.
SOURCE:
- Income Tax Act, 1961
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