Interest on tax and penalty not paid in time

A. lnterest on tax and penalty not paid in time.--If an amount of tror or penalty payable under this Act is not paid within the time prescribed or specifled in the notice of demand, as the case may be, the person who is in default, shall in addition to such tax and pemlty, pay interest for the period of default commencing froln the date next following the due date of payment at the rates specified below--

1. (a) if the period of default is of thrse months or less at 1% per month ;
2. (b) if the period of default exceeds three months bit does not ex& six months, at the rate of 2% per month ; and
3. (c) if the period of default exceeds six months at the rate of 3% per month : Provided that where as a result of an order under sections 9 and 15, of this Act or an order of the Court the tax or penali on which interest was payable has been st paid, if any, shall be refunded. Explanation.--(l) Interest shall be charged for full month And not for a part thereof.

1. (2) If the tax or any other sum paid by cheque or draft, the of the cheque or draft, shall be t of tax or such other sum : Provided that the period intervening cheque or the draft in the office of the and drafts and the date on which such as the case may be, to the treasury computation of interest payable by