Interest Tax Act, 1974 - Misplaced Pages

(Redirected from Interest tax)

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.
Find sources: "Interest Tax Act, 1974" – news · newspapers · books · scholar · JSTOR (January 2017) (Learn how and when to remove this message)

Interest Tax Act, 1974
Parliament of India
Enacted by	Parliament of India
Enacted	1974
Status: Repealed

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 The Act is no longer applicable with regard to chargeable interest accruing after 31 March 2000.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 Interest Tax Act of 1974 governs the tax process associated with the imposition and collection of Interest Tax in situations specified under its various sections.

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

Chargeable Interest

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.

The Interest Tax Act also does not apply to any Cooperative Society engaged in the Banking business.

Penalty for concealment of chargeable interest

The Interest Tax Act has specified a penalty for concealment of the details regarding chargeable interest or the furnishing of incorrect details regarding the amount 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.

References

THE interest-TAX ACT, 1974 - 45 OF 1974, Government of India - Income Tax Dept.
"Scope of chargeable interest". Government of India - Income Tax Dept. Archived from the original on 13 December 2012. Retrieved 11 March 2013.
"Penalty for concealment of chargeable interest". Government of India - Income Tax Dept. Archived from the original on 13 December 2012. Retrieved 11 March 2013.

v t e Taxation in India
Taxes	Central Excise Duty Goods and Services Tax Income tax in India Securities Transaction Tax Service tax Value-added taxation
Bodies	CBDT Chairperson, Central Board of Direct Taxes Investigation Division of the Central Board of Direct Taxes Central Board of Excise and Customs Chairperson Central Board of Excise & Customs Income Tax Department Central Economic Intelligence Bureau Directorate of Revenue Intelligence Tax Administration Reform Commission
Legislations	Benami Transactions (Prohibition) Act, 1988 Expenditure Tax Act, 1987 Finance Act (India) Gift Tax Act, 1958 Interest Tax Act, 1974 The Income-tax Act, 1961 Wealth Tax Act, 1957
Schemes	Income declaration scheme, 2016 Pradhan Mantri Garib Kalyan Yojana Voluntary Disclosure of Income Scheme
Compliance	Income Tax Returns ITR-2 SUGAM ITR-4S Indian tax forms Tax Collected at Source Tax Deducted at Source Tax Deduction and Collection Account Number
Notable cases	Cairn Energy and Government of India dispute

Categories: