Section 115Q — the law in short
What the courts have decided on section 115Q, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Statutory position — s.115P interest at one per cent a month and s.115Q deeming the company an assessee in default on unpaid DDT
CBDT Circulars & InstructionsCuts both waysSuperseded by amendment
My company paid its dividend distribution tax late. What interest runs, from when, and what can the Department do to recover the tax itself?
Section 115P charges simple interest at one per cent for every month or part of a month on the unpaid tax on distributed profits, running from the date immediately after the last date on which the tax was payable under s.115-O(3) — fourteen days from the earliest of declaration, distribution or payment — and ending on the date the tax is actually paid. Section 115Q then deems the principal officer and the company to be an assessee in default in respect of the amount payable, and applies all the provisions of the Act for the collection and recovery of income-tax.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.