Finance Act 2013 has imposed a minimum penalty of Rs 20,000 and a maximum penalty of 50 percent of the tax payable for non-filing of income tax return under Section 114 of the Income Tax Ordinance. According to the budgetary explanatory circular issued here on Friday: Following amendments have been made in Section 182 to rationalise the penalties provided for different offences in order to promote compliance to the relevant legal obligations:
A minimum penalty of Rs 20, 000 and a maximum penalty of fifty percent of the tax payable has been provided for non-filing of return U/S 114 within the due date. In cases where no tax is payable a penalty of Rs 20,000 shall be levied for non filing of return. Secondly, serial No IA has been introduced to prescribe penalty for non furnishing of statements U/S 115,165 or 165A at Rs 2,500 for each day of default subject to a minimum penalty of Rs 50,000.
Thirdly, Serial No IAA has been introduced to prescribe penalty for non-furnishing of wealth statement or wealth reconciliation at the rate of rupee 100 per day of default. Fourthly, the rates of penalty for non production of records and documents U/S section 177 have been rationalised. Now there shall be a penalty of Rs 25,000 in case of non-compliance to first notice, a penalty of Rs 50,000 in case of non-compliance to second notice, and a penalty of one hundred thousand rupees in case of non-compliance to third notice.
Fifthly, the rates of penalty for non compliance to Section 176 have been rationalised. Now there shall be a penalty of twenty-five thousand rupees in case of first default, and a penalty of fifty thousand rupees for the second and subsequent defaults. Sixthly, Serial No 16 has been introduced to prescribe penalty for non display of NTN at the place of business has been prescribed. The rate of penalty is five thousand rupees.