The Act applied to the whole of India, including all the States and Union Territories with no exceptions.
The Act is no longer applicable with regard to chargeable interest accruing after 31 March 2000.
[1] The Act applies to all Scheduled Banks that are required to pay tax on the chargeable interest amounts they have on their deposits.
[2] The Interest Tax Act also does not apply to any Cooperative Society engaged in the Banking business.
[3] In such circumstances, the Assessing Officer or the Commissioner of Appeals may impose, in addition to payment of the interest tax payable, a penalty up to three times of the total Interest Tax that has been either concealed or furnished incorrectly.