Income-tax Act, 1961 · Chapter XVII: Collection and Recovery of Tax · C.—Advance payment of tax
Section 217: Interest payable by assessee when no estimate made
The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.
[(1) Where, on making the regular assessment, [the [Assessing Officer] finds—
(a) that any such person as is referred to in clause (a) of sub-section (1) of section 209A has not sent the statement referred to in that clause or the estimate in lieu of such statement referred to in sub-section (2) of that section; or
(b) that any such person as is referred to in clause (b) of sub-section (1) of section 209A has not sent the estimate referred to in that clause, simple interest at the rate of [fifteen per cent.] per annum] from the 1st day of April next following the financial year in which the advance tax was payable in accordance with [the said sub-section (1) or sub-section (2)] up to the date of the regular assessment shall be payable by the assessee upon the amount equal to the assessed tax as defined in sub-section (5) of section 215.
(1A) Where, on making the regular assessment, the [Assessing Officer] finds that [any person who is required to send an estimate under sub-section (4) of section 209A or] any such person as is referred to in sub-section (3A) of section 212 has not sent the estimate referred to therein, simple interest at the rate of [fifteen per cent.] per annum from the 1st day of April next following the financial year in which the advance tax was payable in accordance with [the said sub-section (4) or, as the case may be, sub-section
(3A)] up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax paid by him falls short of the assessed tax as defined in sub-section (5) of section 215.]
(2) The provisions of sub-sections (2), (3) and (4) of section 215 shall apply to interest payable under this section as they apply to interest payable under that section.
Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.