Section 7: Section 147 of the Income Tax Act, 2000 is amended in–

(a) subsection (1) by repealing and replacing that subsection with the following new subsection- “(1) Subject to subsection (5), a person who fails to pay tax or a penalty after the first seven days on which such payment was due under this Act, shall be liable to pay interest at a rate equal to three percent higher than the specified rate on the amount due, calculated from the due date to the date the payment is actually made” (b) subsection (5) by inserting the following new paragraphs immediately after paragraph (b)- “(c) Where good cause is shown and accepted by the Commissioner- General”; “(d) For the purposes of paragraph (c) of subsection (5) of section 147 and subsection (2) of section 152A ‘good cause’ refers to circumstantances beyond the control of the taxpayer, which includes but is not limited to, death in the family, illness, imprisonment, and an act of God”.