Penalty on Failure to Deduct or Pay Tax
Nature of Default
Penalty applies for:
• Failure to deduct tax at source wholly or partly.
• Failure to pay dividend distribution tax on dividends declared/distributed on or before 31-03-2020.
• Failure to pay tax on winnings in kind under Section 194B.
• Failure to pay tax on winnings from online games in kind under Section 194BA.
• Failure to pay tax on benefit/perquisite in kind under Section 194R.
• Failure to pay tax on consideration for transfer of VDAs in kind under Section 194S.
Quantum of Penalty
• The Assessing Officer may impose a penalty equal to the amount of tax which the person failed to deduct or pay.
• Penalty shall not be levied if the assessee proves reasonable cause for the failure.