Chapter VI Demand, payment and recovery

Where any tax or penalty is payable in consequence of any order passed under or in pursuance of this Act, the assessing authority shall serve on the person concerned a notice of demand in the prescribed form specifying the amount so payable.

(1) The tax or penalty under this Act shall be paid in the manner hereinafter provided. (2) Every person liable to furnish a return under sub-S. (1) of S. 8 shall, before he furnishes the return, pay into a Government treasury the full amount of tax due on the basis of such return and shall furnish, along with the return, a receipt from such treasury in token of such payment. (3) The principal officer deducting any tax under S. 12 shall pay the amount to a Government treasury within thirty days of the deduction and shall furnish, along with the returns required to be made under sub-S. (2) thereof, a receipt from such treasury in token of such payment. (4) The amount of tax or penalty due under this Act— (a) in excess of payment already made, or (b) where no payment has been made, shall be paid by such date as may be specified in the notice of demand and, where no such date is specified, it shall be paid within thirty days of service of the notice of demand.

(1) Where any tax or other dues payable under this Act is not paid on or before the due date the person shall be deemed to be in default. (2) Where a person is in default, the assessing authority may, in his discretion, direct that in addition to the amount due a sum not exceeding the amount of the tax in arrears shall be recovered from the defaulter by way of penalty : Provided that before directing the recovery of any such penalty the assessee shall be given a reasonable opportunity of being heard.

Any person who has paid any tax or penalty in excess of the amount due under this Act may, within ninety days of the service of the order of assessment or that passed on appeal or revision, as the case may be, apply for a refund and the amount paid in excess shall be refunded accordingly.