(1) Any amount specified as payable in a notice of demand under section 31 or an order under section 32,1[section 32A,] section 34 or section 35, shall be paid within the time, at the place and to the person mentioned in a notice or order or if a time is not so mentioned, then on or before the first day of the second month following the date of the service of the notice or order and any assessee failing so to pay shall be deemed to be in default:
2[Proviso x x x]
(2) If an assessee makes an application within the time mentioned in the notice of demand in section 31, for being allowed to pay the tax due, the3[Assistant Commissioner of Agricultural Income-tax] may in his discretion, by order in writing, allow the assessee to pay the tax due, in instalments not exceeding four in number at such intervals as the said Officer may fix in his discretion or extend the time for the payment of the entire tax due for such reasonable period as he may fix, if the assessee undertakes in writing to pay interest4[at the rate charged by the Scheduled Banks for unsecured loans]:
2[Proviso x x x]
Provided2[x x x] that if, on being allowed to pay the tax due by instalments, the assessee defaults in the payment of any one instalment, he shall be deemed to be a defaulter in respect of the total remaining amount of tax due.
_________________________
1. Inserted by Act 14 of 1983 w.e.f. 1.12.1982.
2. Omitted by Act 29 of 1976 w.e.f. 1.4.1975.
3. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
4. Substituted by Act 23 of 1985 w.e.f. 1.4.1985.