Under the Income-tax Act, penalties are levied for various defaults committed by the taxpayer. Some of the penalties are mandatory and a few are at the discretion of the tax authorities. In this part, you can gain knowledge about the provisions relating to various penalties leviable under the Income-tax Act.
As per the Union List in the Constitution of India, the Central Government has the power to levy a tax on any income other than agricultural income, which is defined in Section 10(1) of the Income Tax Act, 1961, which is the charging statute of income tax in India. Income tax is the annual tax levies on the income of businesses and individuals, wherein businessmen and other individuals are required to file their income returns to the central government every year to determine the amount of tax they owe to the government. It is the key source of funding available to the government. As per the Income Tax laws in India, income tax is imposed by the government on,
- Hindu United Families (HUF)
- Companies and firms
- Limited Liability Partnership (LLP)
- Association of persons, a body of individuals
- Local authority and any other artificial juridical person
Tax evasion in India is a serious affair and for any defaulters or fraudsters, the Income-Tax act provides for adequate repercussions.
- Not Filing Income Tax Returns
- Failure to Pay Tax as Self-Assessment
- Failure to Comply with Demand Notice
- Failure to Get Accounts Audited
- Concealment of Income
- Failure to comply with Income Tax notice
The Income Tax Act exists to ensure tax defaulters and offenders are brought to light. Do not join this list, pay the correct tax on time.
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