Penalty Section 182
Penalty Section 182: Finance Act, 2024 — Explanation regarding Important Amendments made in the Income Tax Ordinance, 2001
Important amendments made in Income Tax Ordinance, 2001 (“the Ordinance”) through Finance Act, 2024 are explained in the subsequent paragraphs.
Penalty Section 182
At present, no penalty or prosecution is provided in law where a person discontinues business and fails to file a return even in response to notice issued by the Commissioner concerned. Serial, 1B has been inserted in section 182 which states that in cases where business has been discontinued and the taxpayer fails to file return even in response to notice, penalty of the higher of 0.1% of the tax payable for the tax year for each day of default or Rs.1,000 per day of default subject to a minimum penalty of Rs. 10,000/- or Rs. 50,000/- respectively for individual or other persons, has been provided in law.
Another insertion in the table under section 182 (serial 3A) prescribes the penalty for non-compliance of section 99B.
If a trader fails to register or fails to pay advance tax under Tajir Dost Special Procedure, 2024, his shop is liable to be sealed for seven days on first default and for twenty-one days for each subsequent default.
A new penalty (serial 10A) has been introduced for noncompliance of section 114B. If any person who fails to comply with income tax general order issued by the Board within 15 days, such person shall pay a penalty of fifty million rupees for the first default and one hundred million rupees for each subsequent default. The penalty is applicable from the date to be notified by the Board.
To address non-compliance of section 37(6), serial 12A has been introduced for any person who fails to pay tax at the time of making payment as consideration of shares or at the time of registration of shares by the Securities and Exchange Commission of Pakistan or by the State Bank of Pakistan, whichever is earlier, such person shall pay a penalty equal to fifty percent of the amount of tax involved.
In order to address filing of blank documents or annexures along with return, or attaching annexure, statement or document in the return form as blank or failing to fully state all relevant particulars or information in return form which are otherwise required as per sub-section (2) of section 114, penalty for a company including a banking company and an AOP has been provided through insertion of serial 35 in section 182, which is Rs.500,000 or 10% of the tax chargeable on the taxable income, whichever is higher.
Read full text of Explanation of Finance Act, 2024 Amendments made in the Income Tax Ordinance, 2001 for more updates on taxes from FBR click here.
