Section 244A(1)(b)

(b) in any other case, such interest shall be calculated at the rate of 5[one-half per cent.] for every month or part of a m onth comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted. Explanation. -For the purposes of this clause, “date of payment of tax or penalty” means the dat e on and from which the amount of tax or penalty specified in the notice of demand issued under section 156 is paid in excess of such demand. 6[(1A) In a case where a refund arises as a result of giving effect to an order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264, wholly or partly, otherwise than by making a fresh assessment or reassessment, the assessee shall be entitled to receive, in addition to the interest payable under sub -section ( 1), an additional i nterest on such amount of refund calculated at the rate of three per cent per annum, for the period beginning from the date following the date of expiry of the time allowed under sub -section ( 5) ofsection 153 to the date on which the refund is granted.]