Tax Book 2023

Offences and Prosecutions Chapter- 24

due date him within the due date for payment

and the statement is filed within 90

days from the due date for filing the

statement and, in all other cases, a

penalty of Rs. 2 ,500 for each day of

default subject to a minimum penalty

of Rs. 1 0,000:

Provided that where it stands

established that no tax was required

to be deducted or collected during the

relevant period, minimum amount of

penalty shall be Rs. 10,000.

1AA (^) Where any person fails to furnish
wealth statement or wealth
reconciliation statement.
Higher of 0.1% of the taxable income
per week or Rs. 10 0,000.
114 and 116
1AAA Where any person fails to furnish a
foreign assets and income
statement within the due date.
Such persons shall pay a penalty of
2 % of the foreign income or value of
the foreign assets for each year of
default.

116A

2. Penalty for Failure to Issue cash
   memo, invoice or receipt

Higher of Rs.5,000 or 3% of the

amount of the tax involved

174 and Chapter VII

of the Income Tax

Rules

3. Penalty for Failure to Apply for
   Registration

Rs. 10 ,000 181

4. (^) Penalty for Failure to Notify a
   Change of Material Nature
   Rs. 5 ,000 181

4A

Any person who is required to

furnish or update a taxpayer’s

profile but fails to furnish or update

within the due date.

Omitted 114A

4B

Any person who contravenes the

provisions of section 181AA.

Such a person shall pay a penalty at

the rate of Rs. 10 0 , 000 for each

connection provided to an

unregistered person.

181AA

5. Failure to Deposit the amount of tax
   or any part thereof

(a) For the first time default, 5% of the

amount of the tax in default.

(b) For the second default, an

additional penalty of 25% of the

amount of the tax default.

(c) For the third and subsequent

default, an additional penalty of

50% of the amount of tax in

default.

137

6. (^) Repetition of erroneous calculation
   in the return for more than 1 year
   resulting in lesser amount of tax
   paid is less than the actual tax
   payable under this Ordinance.
   Higher of Rs. 30 ,000 or 3% of the tax
   involved:
   Provided that no penalty shall be
   imposed to the extent of the tax
   shortfall occurring as a result of the
   taxpayer taking a reasonably
   arguable position on the application of

137