What are the penalties under Income Tax Act? Check details
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Tax evasion is a serious offense with heavy penalties (plus interest) under the Income Tax Act (Act) 1961. It is worth noting that sometimes fines are used normally, while in special cases it is at the discretion of the tax office.
Penalties prescribed under the Act:
The Valuation Officer can determine the amount of tax to be discussed.
A penalty of Rs 5,000 if the refund is completed after the due date specified in clause 139(1). However, if the total amount received does not exceed 5 lakhs, the penalty will be Rs 1,000.
Half of the tax paid on income, if the income is declared due to intervention, 200% of the tax paid on income is not reported.
If a citizen does not submit the information specified in Section 44AA on time, he will be fined up to Rs. 25,000 under division 271A. If the assessed person enters the international exchange, the penalty is 2% of the international exchange or domestic order price.
A fine of Rs 1,50,000 or Rs 0, whichever is lower, if the evaluator fails to review their records, obtain an audit report, or issue such publications. 5% of all sales, turnover or total revenue. A fine of Rs 100,000 will be imposed if the assessor fails to submit audited documents relating to foreign trade.
Where the competent authorities decide on undeclared income, the penalty will not determine the amount of tax payable, but will not exceed most of the charges for undeclared wages.
If a citizen is deemed not to have paid his tax liability, for example, if he fails to pay within the specified time after notification under Article 156, the might force a punishment not exceeding the tax in arrears as per Section 221(1).
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