The Federal Board of Revenue (FBR) has said that a new penal regime has been introduced through the Tax Laws (Third Amendment) Ordinance, 2021.
In this regard an amendment has been made in Section 182 of Income Tax Ordinance, 2001, the FBR said in an explanation to the new ordinance.
A person who fails to file the return within the due date will have to pay a penalty of higher of Rs.1000/- or 0.1 per cent of tax payable for each day of default.
However, the minimum penalty shall be Rs10,000/- in case of individuals having 75 per cent or more income from salary and Rs50,000/- in other cases and the maximum penalty shall not exceed 200 per cent of tax payable by the person.
Furthermore, above mentioned penalties shall also be reduced by 75 per cent, 50 per cent and 25 per cent in case return is filed by the person within one, two or three months respectively after the due date.
General penalty for contravening any provisions of the ordinance has been omitted, the FBR added.