.-¬(1) Any amount specifed as payable in a notice of demand under section 30 shall be paid within ][thirty days] [ Substituted by Act 4 of 1988, Section 148, for " thirty-five days " (w.e.f. 1.4.1989).][of the service of the notice at the place and to the person mentioned in the notice:

Provided that, where the ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ] [Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer " (w.e.f. 1.4.1988).][has any reason to believe that it will be detrimental to revenue if the full period of ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ] [thirty days] [ Substituted by Act 4 of 1988, Section 148, for " thirty-five days " (w.e.f. 1.4.1989).][aforesaid is allowed, he may, with the previous approval of the ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ] [Joint Commissioner] [ Substituted by Act 21 of 1998, Section 66 (w.e.f. 1.10.1998).][, direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ][thirty days] [ Substituted by Act 4 of 1988, Section 148, for " thirty-five days " (w.e.f. 1.4.1989).][aforesaid, as may be specified by him in the notice of demand.

(2)

If the amount specifed in any notice of demand under section 30 is not paid within the period Limited under sub-section (1), the assessee shall be liable to pay simple interest at ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ] [[one per cent.] [Substituted by Act 4 of 1988, Section 148, for certain words (w.e.f. 1.4.1989). ][for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid] [Substituted by Act 4 of 1988, Section 148, for certain words (w.e.f. 1.4.1989). ][:

Provided that, where as a result of an order under section 23, ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ] [or section 23-A] [ Inserted by Act 10 of 2000, Section 74 (w.e.f. 1.6.2000).][or section 24, or section 25, or section 26, or section 27, or section 29, or section 35 ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ] [or any order of the Wealth-tax Settlement Commission under sub-section (4) of section 22-D] [ Inserted by Act 4 of 1988, Section 148 (w.e.f. 1.4.1989).][the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded:] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ]

[Provided further that in respect of any period commencing on or before the 31st day of March, 1989, and ending after that date, such interest shall, in respect of so much of such period as falls after that date, be calculated at the rate of ] [ Inserted by Act 4 of 1988, Section 148 (w.e.f. 1.4.1989).][one per cent.] [ Substituted by Act 54 of 2003, Section 20, for " one and one-fourth per cent." (w.r.e.f. 8.9.2003).][for every month or part of a month.] [ Inserted by Act 4 of 1988, Section 148 (w.e.f. 1.4.1989).]

[(2-A) Notwithstanding anything contained in sub-section (2), ] [Inserted by Act 67 of 1984, Section 66 (w.e.f. 1.10.1984). ][the ] [Substituted by Act 4 of 1988, Section 88, for " the Board may " (w.e.f. 1.4.1987). ][Chief Commissioner or Commissioner] [ Substituted by Act 11 of 1987, Section 127, for " Commissioner " (w.e.f. 1.4.1988).][may] [Substituted by Act 4 of 1988, Section 88, for " the Board may " (w.e.f. 1.4.1987). ] [reduce or waive the amount of ] [Inserted by Act 67 of 1984, Section 66 (w.e.f. 1.10.1984). ] [interest paid or payable by an assesse] [ Substituted by Act 11 of 1987, Section 88, for " interest payable by an assessee " (w.r.e.f. 1.10.1984).][under the said sub-section if, ] [Inserted by Act 67 of 1984, Section 66 (w.e.f. 1.10.1984). ][he is satisfied that] [ Substituted by Act 11 of 1987, Section 88, for certain words (w.e.f. 1.4.1987).],-

(i) [ payment of such amount has caused or would cause genuine hardship to the assessee; [ Substituted by Act 11 of 1987, Section 88, for Clauses (i) and (ii) (w.e.f. 1.10.1984).]

(ii) default in the payment of the amount on which interest has been paid or was payable under the said sub-section was due to circumstances beyond the control of the assessee; and]

(iii) [ the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.] [Inserted by Act 67 of 1984, Section 66 (w.e.f. 1.10.1984). ]

(3)

[ Without prejudice to the provisions contained in sub-section (2), on an application made by the assessee before the expiry of the due date under sub¬section (1), the ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ][Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer " (w.e.f. 1.4.1988).][may extend the time for payment or allow payment by instalments, subject to such conditions as he may think fit to impose in the circumstances of the case.

(4)

If the amount is not paid within the time limit under sub-section (1) or extended under sub-section (3), as the case may be, at the place and to the person mentioned in the said notice, the assessee shall be deemed to be in default.

(5)

If in a case where payment by instalments is allowed under sub-section (3), the assessee commits default in paying anyone of the instalments within the time fixed under that sub-section, that assessee shall be deemed to be in default as to the whole of the amount then outstanding, and the other instalment or instalments shall be deemed to have been due on the same date as the instalment actually in default.

(6)

Where an assessee has presented an appeal under section 23, ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ] [or section 23-A] [ Inserted by Act 10 of 2000, Section 74 (w.e.f. 1.6.2000).][, the ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ][Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer " (w.e.f. 1.4.1988).][may, in his discretion, and subject to such conditions as he may think fit to impose in the circumstances of the case, treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired as long as such appeal remains undisposed of.

(7)

Where an assessee has been assessed in respect of assets located in a country outside India, the laws of which prohibit or restrict the remittance of money to India, the ] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ] [Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer " (w.e.f. 1.4.1988).][shall not treat the assessee as in default in respect of that part of the tax which is attributable to those assets, and shall continue to treat the assessee as not in default in respect of that part of the tax until the prohibition or restriction of remittance is removed.] [Substituted by Act 46 of 1964, Section 28, for Section 31 (w.e.f. 1.4.1965). ]