| eit Pemenniin: | Paper presented by Ranjan Kumar Bhowmik rom Ex-Member National Board of Revenue Presentation outline | > > Introduction 3 * Grounds and amounts of penalty iwith reference sections. \® Grounds of prosecution | with’ reference section » Conclusion | |Penalty | h as per Penalty Is the additional amount of income tax thoug| definition of tax at section 2 (62), tax Includes penalty. > The power to Impose penalty is given mainly to the DCT. + But In case of concealment of income and submission of fake audit report the power to impose penalty is also given to the CT (Appeals), AJCT and Taxes Appellate Tribunal. ie iden ‘Pena eosin cone 1, |Not. maintaining] 123 | 1.5 times of the amount. of tax accounts’ in. the| (Read with |. payable (Maximum) prescribed section 35, : : manner + |> 50% of tax on house property income: rule8 + 8A] or Tk.5,000 whichever is higher incase the owner of the house receiving monthly rent more than’ Tk.25,000 but violates rules and order of NBR relating to maintenance. of register and depositing rent to bank-account.Penal Provisions!(Cont:) [Si | Grounds orPenany Ag Failure to file | 124(1)] 10% of the last assess return including: . withholding tax return, x or aoe higher] Tk. 1,000/- J + ‘Tk 50/- per day of default, “ |Total amount of suich penalty will not exceed Tk, 5,000 in case of a new individual assessee who was not assessed previously. 502% of last assessed tax or Tk.1,000 whichever is higher in case of existing individual assessee failed to submit return in time. | accounts, fe. /ws. $8,108,109; 110 and 140 SS i Tk’ S00/- plus 250 per month during which ie default continues. -| Proviso Tk.25,000/- plus 500/- per day. \during which the default _{continues. a of.another person }00/( maximum) Failure to verify TIN : | |to verify TIN) 124A [Maximum Tk50,000 (NBR has given 25 authorities!BC) a [Si Sectio | Amount of Penalty iinstee Riess dae aU 4 3 | Failure to pay 125 |The amount of short fall advance tax. (maximum) 4. |Non-compliance 126 |The amount of tax with notice u/s 79, subsequently assessed 180, (maximum) 127 |25% of the short fall (maximum) concealment; of. income re, then the amount of penalty will ‘Jinetease by additional 15% for each earlier assessment year, - [Penalty for false 7. 129A | Not less than Tk.50,000/-and not more audit report by than Tk: 2,00,000/-~ Chartered Accountant 8, | Penalty for 129B » | Tk.1,00,000/- (fixed) submitting fake DCT, AJCT, CT (Appeals) and Taxed audit report Appellate Tribunal can impose such’ penalty.gy Grounds of Penalty | Section Amount of Penalty | 9. |Penalty for default.in] 137 |The amount of arrear tax i payment of tax (maximum) ‘ 4 | 10. |Failure to 57 2% per month of the deduct/collect tax , at] amount of tax to be source or having deducted, collected — or'| deducted/collected deposited but: fails. to deposit} i ‘into, national]: - [ |exchequer. |, 11, [Failure to give notice] 89(3) |The amount of tax ; to the DCT regarding _.)|subsequently assessed : the discontinuance of| (maximum), : ‘Failure to submit as per section 107EE statement of value. of --such' international transection. international q transection. Maximum 2% of the The ceiling of penalty does not mean that penalty must necessarily be imposed in every case. The discretion of the DCT to levy or not to levy a penalty is still preserved by the penalty sections.Prosecution [Imprisonment for punishablé offence] Sl] — Nature of Offence [Reference| Imprisonment : Section 1. [Failure to “deduci/collect| 164(a) |T year (Maximum) with] ‘or or without fine. 1 year (Maximum) wi or without fine. {1 year (Maximum). with] ‘or without fin inspeetion ‘or to: allow copies to be taken i in ‘accordance with . the provisions of section 114. j Fails to furtish|- information required| Se casesProsécition (Imprisonment for punishable offencé)c SL Nature of Offence | Reference] Imprisonment als Section | 7 |Fails to" comply with the] 164(ce) 1 year (Maximum) with] requirement.u/s.116, “or Without fine. —_| I 8 | Fails to comply with the 164(ece), | 11 year (Maximum) with f tequirenient ws LOA Se ___or without fine. , 1 year (Maximum) vill or without fine. / Minimum 3 months but maximum up to 3 years | with or without ne. | 165d) maximum up to 3 years | }. with:or without fine.Prosecution (Imprisonment for punishable ites eolieed SL | Nature of Offence | Reference Imprisonment Section a aw 13, |Deliberately using] 165(A) 3 years (Maximum) | fake TALN.. or TALN. with or without fine up of another person _ | to Pk. 50,000/. | |; 14... Submitting fake. au 165AA | Minimum 3 months |. [report but maximum up to 3 A years with or without fine up to Tk. 1,00,000} L year (Maximum) with or without fine. | the receipt of notice from F in contravention of the of secti TRO to prevent] | attachment. wag \ : | 19. | Disclosure of information| — 168 6.months (Maximum) wi i edicts or withoutfine. .Conclusion + The power to impose penalty is subject to the prior approval of the UCT except in the case of imposing penalty for failure to file return u/s 124. Penal Proceedings can be initiated by the DCT only in connection with the regular assessment and no such proceedings can be started after completion of the assessment order. ee ‘+ If the penalty proceedings are not finalized but the assessment is completed there is nothing to bar the DCT.to impose penalty. Board has power to compo!