Payment of interest

(1) If an owner fails to pay tax due from him as required under section 3 or section 3-F, he shall in addition to the amount of tax be liable to pay simple interest on the amount of tax due from him at the rate of one and a half per cent per month from the date immediately following the last date for the submission of declaration as provided in sub-section (1) of section 4-A till the default continues. (2) If the amount of tax under section 3 or section 3-F or penalty under section 8 due from an owner is not paid by him within the period specified in the prescribed notice, or, if no period is specified in the notice, within thirty days from the service of such notice, the owner shall, in addition to the amount of tax or penalty, be liable to pay simple interest on the due amount of tax or penalty, as the case may be, at the rate of one and a half per cent per month from the date following the date on which the period specified in the aforesaid notice or the period of thirty days, as the case may be, expires till the default continues: Provided that where the recovery of any tax or penalty is stayed by an order of a court, the amount of tax or penalty shall, after the order of stay is vacated, be recoverable alongwith interest at the aforesaid rate on the amount due and such interest shall be payable from the date, the tax or penalty had first become due. (3) The amount of interest payable under this section shall be calculated by treating part of a month as one month but no interest shall be chargeable if the total amount payable on account of tax or penalty or both, is fifty rupees or less and if such an amount is more than fifty rupees but less than one hundred rupees, interest shall be calculated treating such amount to be one hundred rupees.