Interest rate on tax demand notice

Interest calculation must be after adjustments of the due amount date.

Hi,

Thank  you for the update. I am not clear about your comments can you please elborate more 

Interest for belated payment of a Demand raised under S.156 of the Income Tax Act, can be  levied   only in accordance with the provisions of Section 220(2) of the Income Tax Act,1961.

Presently, the rate of interest is 1% per month, and the period will be the period between the end of the grace period of one month from the Date of Service of the Demand Notice, and the Date of Payment.        

It is a question of fact whether the Demand Notice for the Assessment Year 2009-10 was actually served on you or not, and if not served, why.

You may take up the matter with your Assessing Officer as early as possible.

Brother Mr.R. Rajagopalan is rightly eloberated for your querry. I too suggested the same.