Interest Tax Act, 1974
|Interest Tax Act, 1974|
|Parliament of India|
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The Interest Tax Act, 1974 was an Act that imposed a special tax on interest accrued in specified cases. The Act applied to the whole of India, including all the States and Union Territories with no exceptions. The Act is no longer applicable with regard to chargeable interest accruing after 31 March 2000.
Interest Tax Act
The Act applies to all Scheduled Banks that are required to pay tax on the chargeable interest amounts they have on their deposits.
This Interest Tax is required to be charged at the rate of 7% (Seven percent) of the amount of chargeable interest. This was modified to 3.5% (Three and a half percent) for Interest accrued since 31 March 1983, 3% (Three percent) subject to certain conditions since 31 March 1992, 2% (Two percent) since 31 March 1997, and no Interest Tax accruing or arising after 31 March 2000.all over India in govt tax 15.5% total act of 1974 adhiniyam to in India
As per the Interest Tax Act, the chargeable interest that applied to a credit institution was the total amount of interest apart from interest charged on loans and advances made to different credit institutions.
Penalty for concealment of chargeable interest
In such circumstances, the Assessing Officer or the Commissioner of Appeals may impose, in addition to payment of the interest tax payable, a penalty up to three times of the total Interest Tax that has been either concealed or furnished incorrectly.Template:Cn
- THE interest-TAX ACT, 1974 - 45 OF 1974, Government of India - Income Tax Dept.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
- "Scope of chargeable interest". Government of India - Income Tax Dept. Archived from the original on 13 December 2012. Retrieved 11 March 2013.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>
- "Penalty for concealment of chargeable interest". Government of India - Income Tax Dept. Archived from the original on 13 December 2012. Retrieved 11 March 2013.<templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>