Amendment status not verified — confirm the current text below against the official source.
Defaults for furnishing returns and payment of tax: - (I) If any registered assessee or any other person, liable to pay tax under this Act, fails to furnish returns or annual return within the prescribed time, the prescribed authority shall, after giving such assessee an opportunity of being heard; impose a penalty not exceeding rupees twenty for every day of such default for any month, subject to a maximum of rupees five thousand in a year. (2) If any assessee or other person liable to pay tax under Section 3 and 5, fails to make the payment of tax within the due date, together with interest payable under sub-section (I) and (2) of Section 5, ibe prescribed authority shall after allowing such assessee/person, an opportunity of being heard, direct him to pay in addition to the tax and the interest payable by him: a penalty; at the rate of two percent per month on the total amount of tax and the interest so payable, from the date it has become due, lo the date of his payment or to the date of order of assessment, whichever is earlier. I