Section 115P — DDT Interest: Pre-FA 2020 Legacy

Function in the statutory architecture

Section 115P belongs to Chapter XII-D, under which s. 115-O charged a domestic company additional income-tax on amounts declared, distributed or paid as dividends on or after 1 April 2003 but on or before 31 March 2020. Where the principal officer and the company fail to pay the whole or part of that tax within the time allowed under s. 115-O(3), each is liable to simple interest at one per cent for every month or part of a month.

Interest runs from the day after the last date on which the tax was payable to the date of actual payment.

Operative consequences

• Interest is simple, at one per cent for every month or part of a month of delay.
• Both the principal officer and the company are liable.
• Because s. 115-O reaches only dividends declared up to 31 March 2020, the section bites only on defaults in that tax.

Status

Section 115P carries no omission note, but its subject, tax on distributed profits under s. 115-O, ended with dividends declared on or before 31 March 2020. It operates only for unpaid tax of that period. The Finance Act, 2026 does not amend it.

The 1961 Act governs AY 2026-27 and earlier assessment years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is none.