Tax Book 2023

Offences and Prosecutions Chapter- 24

this Ordinance to the taxpayer’s

position.

7. Failure to Maintain Records under
   the Ordinance and Rules

Higher of Rs. 10,000 or 5% of the

amount of tax on income.

174

8. Failure to non-compliance with the
   provisions of total audit

(a) Such person on first notice shall

be liable to pay a penalty of

Rs.25,000.

(b) If he fails after the second notice

also, the amount of penalty shall

be Rs. 50,000.

(c) Failure to produce the record on

the third notice will result in a

penalty of Rs. 100,000.

177

10. Any person who-

a) Failure to furnish the

information required or to

comply with any other term

of the notice served

Rs.25,000 for the first default and

Rs.50,000 for each subsequent

default.

176

b) Penalty for Making a False
Statement etc.

Higher of Rs. 25,000 or 50 % of the

amount of resulting tax shortfall.

Provided where the taxpayer can

prove that his intention was not to

defraud the authorities the penalty

may be reduced or decreased

accordingly.

114, 116, 174, 176,

177 and 118.

11. Penalty for Obstructing Tax Officials
    to Access to Premises etc.

Higher of Rs. 50 ,000, or 50 % of the

amount of tax involved.

175 and 177

12. Penalty for Concealment of income,
    furnishing of inaccurate particulars
    or claiming of any deduction not
    actually incurred or any act referred
    to in u/s 20, 111 and general

Higher of Rs. 100 ,000 or an amount

equal to the tax which person sought

to evade.

However, if a person proves that he

made claim of exemption or

expenditure unknowingly the penalty

will not be imposed.

Provided that where the taxpayer

admits his default he may voluntarily

pay the amount of penalty due under

this section.

20, 111 & General

13. Penalty for Obstruction in
    Performance of Duties

Rs. 25,000 209, 210 and

general

14. General

If a person contravenes any of the

provision of ITO, 2001, for which no

penalty has, specifically, been

provided

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

amount of tax involved.

15. Failure to Collect or Deduct Tax u/s
    148, 149, 150, 151, 152, 153,
    153A, 154, 155, 156, 156A, 156B,
    158, 160, 231A, 231B, 233, 233A,

Higher of Rs. 40 ,000 or 10% of the

amount of tax.

Division II or

Division III of Part V

of Chapter X or

Chapter XII.