11-03-2011, 04:59 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by quaidian</i>
<br />What happens if one fails to submit his annual income tax returns on define date. I am talking about individual salaried person.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
According to s.182(1) of Income Tax Ordinance, 2001, where a person fails to file return on time he shall pay a penalty equal to 0.1% of the tax payable for each day of default subject to a minimum penalty of five thousand rupees and maximum of 25% of the tax payable.
What if no tax is payable? There may be two interpretations. One, that I support, is that minimum punishment of five thousand rupees will apply even where no tax is payable. The other interpretation is that penalty is related to tax payable if there is no tax payable no penalty.
Appellate Tribunal has consistently adopted the latter interpretation in its judgments reported as 2011 PTD 184, 2010 PTD 1470, 2010 PTD 1394.
<br />What happens if one fails to submit his annual income tax returns on define date. I am talking about individual salaried person.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
According to s.182(1) of Income Tax Ordinance, 2001, where a person fails to file return on time he shall pay a penalty equal to 0.1% of the tax payable for each day of default subject to a minimum penalty of five thousand rupees and maximum of 25% of the tax payable.
What if no tax is payable? There may be two interpretations. One, that I support, is that minimum punishment of five thousand rupees will apply even where no tax is payable. The other interpretation is that penalty is related to tax payable if there is no tax payable no penalty.
Appellate Tribunal has consistently adopted the latter interpretation in its judgments reported as 2011 PTD 184, 2010 PTD 1470, 2010 PTD 1394.
