SHORT ANSWER:
The penalty for late tax payment varies based on the type of tax and the duration of the delay.
DETAILS:
- For Income Tax, a penalty of 1% per month is applicable on the unpaid tax amount.
- For Goods and Services Tax (GST), a late fee of ₹50 per day (₹20 for nil return) is charged until the tax is paid.
- Interest on late payment is also applicable, usually at 1% per month.
PUNISHMENT / IMPLICATIONS (if applicable):
- Failure to pay taxes on time may lead to additional penalties and interest charges.
- Persistent non-compliance can lead to legal action.
SOURCE:
- Income Tax Act, 1961; Goods and Services Tax Act, 2017
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