(1) Where in any financial year the taxpayer pays advance tax on the basis of his own estimate and tax is deducted at source under this Chapter if the sum of such deducted tax and such advance tax is less than 75% (seventy five percent) of the tax payable determined by the regular assessment of tax, in such case the amount of tax remaining payable by the tax payer shall pay simple interest at the rate of 10% (ten percent) per annum on the difference of tax less paid and 75% (seventy five percent) of the tax arising through the regular assessee:

Provided that if the return is not filed on or before the tax day, the rate of interest shall be more than 50% (fifty percent).

(2) Payment of additional advance tax under sub-section (1) from the 1st day of July in the relevant assessment year to the date of regular tax assessment of that year, or from 1« July to the next 2 (two) year period, whichever is lower, the interest has to be paid for the period.

(3) Notwithstanding anything contained in sub-sections (1) and (2), in which case-

(a) tax is paid under section 173; or

(b) a temporary tax has been assessed under section 185 but no regular tax has been assessed,

In that case the simple interest shall be calculated as per the following provisions, namely:-

(1) up to the date on which the tax under section 173 or provisionally determined, has been paid;

(ii) Thereafter, simple interest shall be calculated on the shortfall in the amount of tax so paid from the prescribed 75% (seventy five percent) tax.

(4) Where, as a result of an appeal, revision or reference, the amount on which interest was payable under sub-section (1) is reduced, the amount of interest payable shall be reduced and any excess interest paid shall be refundable the refundable tax.

(5) For the purpose of this section, “Regular Assessment of Tax” shall include the assessment of tax made in pursuance of the receipt of revised returns or audit under section 181.