Penalty for non-filing tax return and wealth statement

Penalty for non-filing tax return and wealth statement

Section 182(1) of Income Tax Ordinance, 2001 has prescribed offences and penalties for failure in filing income tax return and wealth statement:

182. Offences and penalties.— (1) Any person who commits any offence specified in column (2) of the Table below shall, in addition to and not in derogation of any punishment to which he may be liable under this Ordinance or any other law, be liable to the penalty mentioned against that offence in column (3) thereof:—

1. Offence: Where any person fails to furnish a return of income as required under section 114 within the due date.

Penalty: Such person shall pay a penalty equal to 0.1% of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50% of the tax payable provided that if the penalty worked out as aforesaid is less than forty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of forty thousand rupees:

Provided that If seventy-five percent of the income is from salary and the amount of income under salary is less than five million Rupees, the minimum amount of penalty shall be five thousand Rupees:

“Provided further that if taxable income is up-to eight hundred thousand Rupees, the minimum amount of penalty shall be five thousand Rupees:

Provided also that the amount of penalty shall be reduced by 75%, 50% and 25% if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law.

Explanation.— For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122C.

Relevant Sections: 114 and 118

1A. Offence: Where any person fails to furnish a statement as required under section 165, or 165A, 165A or 165B within the due date.

Penalty: Such person shall pay a penalty of Rs.5000 if the person had already paid the tax collected or withheld by him within the due date for payment and the statement is filed within ninety days from the due date for filing the statement and, in all other cases, a penalty of Rs.2500 for each day of default from the due date subject to a minimum penalty of Rs. 10,000:

Provided that where it stands established that no tax was required to be deducted or collected during the relevant period, minimum amount of penalty shall be ten thousand Rupees.”

Relevant Sections: 165 and 165A, 165A and 165B

1AA. Offence: Where any person fails to furnish wealth statement or wealth reconciliation statement.

Penalty: Such person shall pay a penalty of “0.1% of the taxable income per week or Rs.100,000 whichever is higher.”

Relevant Sections: 114 and 116

1AAA. Offence: Where any person fails to furnish a foreign assets and income statement within the due date.

Penalty: Such persons shall pay a penalty of 2 percent of the foreign income or value of the foreign assets for each year of default.

Relevant Sections: 116A

Leave a Reply

You have to agree to the comment policy.