There are various penalties that the income tax department can impose on anyone who is found guilty of evading or avoiding taxes.
These penalties can also apply to companies that either fail to report and pay their own taxes or fail to do not pay their taxes when they are supposed to.
Some of these may be:
- Collecting 100% to 300% of the tax when income is not shown to the income tax department.
- In case of a failure to pay the tax due, the assessing officer may impose a penalty amount but it cannot exceed the amount due in taxes.
- If an individual fails to file tax statements within the time allotted then a penalty of Rs. 200 per day may be charged for every day that the statements are not filed.
- In case someone has concealed details of their income or any fringe benefits that are taxable, the penalty can range from 100% to 300% of the tax amount due.
- If a report from an accountant is not provided as directed then a fine of Rs. 1 lakh may be levied.
- In case an organisation fails to deduct tax where it is supposed to while making payments then the penalty could be payment of the tax due.
These are just some of the penalties that can be levied by the Income Tax department and in some cases, it can be a hefty sum to pay so best thing to do is to ensure that all taxes are paid when they are due.