What is the penalty for non-payment of tax?


A  taxpayer who fails to pay any tax  (other than the penalty imposed under this section) due under this Ordinance by the due date shall be liable for a penalty equal to –
  • in the case of the first default, five percent of the amount of tax in default;
  • in the case of a second default, an additional penalty of twenty percent of the amount of tax in default;
  • in the case of a third default, an additional penalty of twenty-five percent of the amount of tax in default; and
  • in the case of a fourth and subsequent default, an additional penalty of up to fifty percent of the amount of tax in default as determined by the Commissioner, but the total penalty in respect of the amount of tax in default shall not exceed one hundred percent of such amount of tax.
Where, in consequence of any order under this  Ordinance, the amount of tax in respect of which any penalty imposed under subsection (1) is reduced, the amount of the penalty shall be reduced accordingly.

Also check: Filer and Non-filer

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