Under the Limitation Act, 1963, where payment on account of debt or of interest is made before the…

Under section 19 of the Limitation Act, where payment on account of a debt or interest is made before the expiry of the prescribed period by the person liable or his authorised agent, a "fresh period of limitation shall be computed from the time when the payment was made". The proviso requires an acknowledgment of the payment in the handwriting of, or in a writing signed by, the payer.

The payment does not merely leave the old balance period running or add a fixed extra period to it.