You may face these penalties if you don’t pay tax on time.

You may face these penalties if you don't pay tax on time.NewDelhi: The recent data provided by the Central Board of Direct Taxes (CBDT) revealed that India has a less number of honest tax payers. Merely 1.7% or 2 crores Indians paid income tax during the assessment year 2015-16, while only 4.06 crore or 3.2% Indians filed their tax returns.
The data also stated that collection from income tax stood at Rs 1.88 lakh crore in 2015-16, lower from Rs 1.91 lakh crore in the previous year.
Since most of us are not aware of the penalties we might face in case we do not pay income tax, the details of those penalties are given here as:
Penalties for Sell-Assessment Tax (SAT)
SAT is required to be commuted by the taxpayer on his or own self deposits with government. This shall be paid before filing for income tax returns.
As per Section 140A(1) any tax due (after allowing credit for TDS, advance tax, etc.) along with interest under Section 234A, 234B and 234C (if any) should be paid before filing the return of income. Tax paid as per Section 140A(1) is called ‘self-assessment tax’.
Section 140A(3) says, if a person fails to pay either wholly or partly self-assessment tax or interest, then he will be treated as assessee in default in respect of unpaid amount.
Section 221(1) says, if a taxpayer is treated as an assessee in default, then he shall be held liable to pay penalty of such amount as the Assessing Officer may impose and in the case of a continuing default, such further amount or amounts as the assessing officer may, from time to time, direct.
However, the total amount of penalty cannot exceed the amount of tax in arrears.

Bureau Report

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