Payment of interest

(1) If any owner fails to pay the amount of tax or surcharge due from him under this Act, except to the extent mentioned in sub-section (2), he shall, in addition to the amount of tax or surcharge, be liable to pay simple interest on the amount of tax or surcharge due and payable by him, at the rate of one percentum per month, from the date immediately following the last date on which the owner should have either filed the return or paid the tax or surcharge under this Act, for a period of one month and thereafter at the rate of one and a half percentum per month till the default continues. (2) If the amount of tax or surcharge or penalty due from an owner is not paid by him within the period specified in the notice of demand or, if no period is specified within thirty days from the service of such notice, the owner shall, in addition to the amount of tax or surcharge or penalty, be liable to pay simple interest on such amount at the rate of one percentum per month from the date immediately following the date on which the period specified in the notice or the period of thirty days, as the case may be, expires, for a period of one month and thereafter at the rate of one and a half percentum per month till the default continues: Provided that where the recovery of any tax or surcharge or penalty is stayed by an order of any court, the amount of tax or surcharge or penalty shall, after the order of stay is vacated, be recoverable alongwith interest at the aforesaid rate on the amount ultimately found to be due and such interest shall be payable from the date the tax or surcharge or penalty first became due. (3) The amount of interest payable under this section shall- (i) be calculated by considering if part of a month is more than fifteen days as one month and any amount if more than fifty rupees but less than one hundred rupees as one hundred rupees; (ii) for the purposes of collection, and recovery, be deemed to be tax under this Act; (iii) be in addition to the penalty, if any, imposed under this Act.