[1][234B. Interest for defaults in payment of advance tax.[2]

(1) Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under Section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of Section 210 is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of [3][one] per cent for every month or part of a month comprised in the period from the 1st day of April next following such financial year [4][to the date of determination of total income under sub-section (1) of Section 143[5][and where a regular assessment is made, to the date of such regular assessment, on an amount]] equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax.

[6][Explanation 1.In this section, assessed tax means the tax on the total income determined under sub-section (1) of Section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of,

(i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income;

[7][(ia) any relief of tax allowed under Section 89;]

(ii) any relief of tax allowed under Section 90 on account of tax paid in a country outside India;