https://indianpedia.org/index.php?action=history&feed=atom&title=Interest_Tax_Act_1974Interest Tax Act 1974 - Revision history2026-08-04T04:22:36ZRevision history for this page on the wikiMediaWiki 1.45.4https://indianpedia.org/index.php?title=Interest_Tax_Act_1974&diff=209992&oldid=prev>InternetArchiveBot at 13:08, 24 January 20202020-01-24T13:08:54Z<p></p>
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{{Infobox legislation<br />
| imagesize = 100<br />
| enacted_by = [[Parliament of India]]<br />
| date_enacted = 1974<br />
| status = Repealed<br />
}}<br />
The '''Interest Tax Act, 1974''' was an Act that imposed a special tax on interest accrued in specified cases. The Act applied to the whole of India, including all the States and Union Territories with no exceptions. The Act is no longer applicable with regard to chargeable interest accruing after 31 March 2000.<br />
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== Interest Tax Act ==<br />
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The Interest [[Tax]] Act of 1974 governs the tax process associated with the imposition and collection of Interest Tax in situations specified under its various sections.<ref>{{citation |url=http://law.incometaxindia.gov.in/DIT/File_opener.aspx?filepath=\Act2010\DirectTaxLaws\NTT\HTMLFiles\dtmdiv6chp8.HTM&FID=INTEREST-TAX-Act |title=THE interest-TAX ACT, 1974 - 45 OF 1974 |publisher=Government of India - Income Tax Dept. }}</ref><br />
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The Act applies to all Scheduled Banks that are required to pay tax on the chargeable interest amounts they have on their deposits.<br />
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This Interest Tax is required to be charged at the rate of 7% (Seven percent) of the amount of chargeable interest. This was modified to 3.5% (Three and a half percent) for Interest accrued since 31 March 1983, 3% (Three percent) subject to certain conditions since 31 March 1992, 2% (Two percent) since 31 March 1997, and no Interest Tax accruing or arising after 31 March 2000.all over India in govt tax 15.5% total act of 1974 adhiniyam to in India<br />
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==Chargeable Interest ==<br />
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As per the Interest Tax Act, the chargeable interest that applied to a credit institution was the total amount of interest apart from interest charged on loans and advances made to different credit institutions.<ref>{{cite web |url=http://www.incometaxindiapr.gov.in/incometaxindiacr/contents/inte2010/ita_sec5.htm |title=Scope of chargeable interest |publisher=Government of India - Income Tax Dept. |access-date=11 March 2013 |archive-url=https://web.archive.org/web/20121213085906/http://www.incometaxindiapr.gov.in/incometaxindiacr/contents/inte2010/ita_sec5.htm |archive-date=13 December 2012 |url-status=dead }}</ref><br />
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The Interest Tax Act also does not apply to any Cooperative Society engaged in the [[Banking]] business.{{cn|date=January 2017}}<br />
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==Penalty for concealment of chargeable interest==<br />
The Interest Tax Act has specified a [[Sanctions (law)|penalty]] for concealment of the details regarding chargeable interest or the furnishing of incorrect details regarding the amount of chargeable interest.<ref>{{cite web |url=http://www.incometaxindiapr.gov.in/incometaxindiacr/contents/inte2010/ita_sec13.htm |title=Penalty for concealment of chargeable interest |publisher=Government of India - Income Tax Dept. |access-date=11 March 2013 |archive-url=https://web.archive.org/web/20121213035454/http://www.incometaxindiapr.gov.in/incometaxindiacr/contents/inte2010/ita_sec13.htm |archive-date=13 December 2012 |url-status=dead }}</ref><br />
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In such circumstances, the Assessing Officer or the Commissioner of Appeals may impose, in addition to payment of the interest tax payable, a penalty up to three times of the total [[Interest]] Tax that has been either concealed or furnished incorrectly.{{cn|date=January 2017}}<br />
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==References==<br />
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{{Taxation in India}}<br />
{{Indian legislations}}<br />
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[[Category:Taxation in India]]<br />
[[Category:Indian tax legislation]]<br />
[[Category:1974 in India]]<br />
[[Category:1974 in law]]</div>>InternetArchiveBot