Section 119 : Interest to be charged if tax is not paid

1)If any person does not pay tax on the prescribed due date for payment of tax, an interest by the normal rate of interest, for each month and a portion of the month, in the amount due and payable shall be imposed on the person for the period during which tax is so due and payable.

2) For purposes of computing the interest to be paid pursuant to sub-section (1), interest shall not be exempted from the extended time limit given pursuant to Section 98.

3) The person withholding tax shall not be allowed to recover the interest payable by him or her because of his or her failure to comply with sub-section (8) of Section 95A, or the person withholding tax shall not be allowed to recover the interest payable by him or her, because of his or her failure to comply with sub-section (4) of Section 90,  from the person required to make tax withholding or the person subject to tax withholding.

4) If the tax is not paid within the time limit given pursuant to Section 110A, it shall be recovered from such person along with an additional interest of five percent per annum on the outstanding tax.