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    Question

    Interest payable by a non-corporate assessed for

    deferment of advance tax is
    A 1.03% p.m. Correct Answer Incorrect Answer
    B 15% p.a. Correct Answer Incorrect Answer
    C 18% p.a. Correct Answer Incorrect Answer
    D 1% p.m. Correct Answer Incorrect Answer

    Solution

    Non-corporate taxpayers who defer advance tax payments are typically required to pay interest on the deferred amount. The interest rate is usually around 1% per month (1% p.m.) on the amount of tax deferred. This is a common provision in many tax systems to encourage timely payment of taxes and to compensate the government for the delayed receipt of tax revenue.

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