Amendment status not verified — confirm the current text below against the official source.
Consequences of failure to deduct or to pay tax.- (1) If an employer (not being an officer of Government) does not deduct the tax at the time of payment of salary or wage or after deducting fails to pay the tax as required by or under this Act, he shall without prejudice to any other consequences and liabilities which he may incur, be deemed to be an assessee in default in respect of the tax. (2) Without prejudice to the provisions of sub-section (1) if an employer referred to in sub-section (1) does not deduct the tax at the time of payment of the salary or wage, or after deducting fails to pay the tax as required by or under this Act, he shall be liable to pay simple interest at 2[1[one and half per cent]1]2 of the amount of the tax due for each month or part thereof for the period for which the tax remains unpaid.