(1) The Government shall pay simple interest at 10% (ten per cent) per annum on the amount by which the aggregate sum of advance tax paid during a financial year exceeds the amount of tax payable by him as determined on regular assessment.

(2) The period for which interest under sub-section (1) shall be payable shall be the period from the first day of the concerned income year to the date of regular assessment in respect of the income of that year or a period of two 2 (years) from the first day of concerned assessment year, whichever is shorter.