Finance Act, 1976

Amendment of section 477 (time for payment of tax) of Income Tax Act, 1967 and section 20 (interest on income tax and sur-tax in cases of fraud or neglect) of Finance Act, 1971.

6.—(1) Section 477 of the Income Tax Act, 1967 , is hereby amended by the substitution, for subsections (1) and (2), of the following subsections:

“(1) Subject to the provisions of this section, tax contained in an assessment for any year shall be payable on or before the 1st day of July in that year, except that tax included in an assessment for any year which is made on or after the 1st day of July shall be deemed to be due and payable on the day next after the day on which the assessment is made.

(2) The following tax charged for any year, that is to say—

(a) tax charged under Schedule D on any individual in respect of the profits or gains of any trade or profession, and

(b) subject to the provisions of section 126, tax charged on any individual in respect of any office or employment,

shall, instead of being payable on or before the 1st day of July in that year or on such other date as is specified in subsection (1), be payable in two equal instalments, the first instalment on or before the 1st day of July in that year or on such other day as aforesaid and the second instalment on or before the following 1st day of January, and the provisions of this Act as to the recovery of tax shall apply to each instalment of the tax, in the same manner as they apply to the whole amount of the tax:

Provided that where the assessment is not made until after the said following 1st day of January, this subsection shall not have effect and the tax shall be due and payable as provided in subsection (1).

(2A) This section shall have effect, as respects any assessment for the year 1976-77, as if—

(a) references to the 1st day of July were construed as references to the 1st day of October, and

(b) references to the 1st day of January were construed as references to the 1st day of April.”.

(2) Section 20 (2) of the Finance Act, 1971 , shall have effect as if—

(a) in relation to any assessment for the year 1976-77, “October” were substituted for “January”, and

(b) in relation to any assessment for the year 1977-78 or any subsequent year of assessment, “July” were substituted for “January”.