SHORT ANSWER:
The penalty for not paying advance tax can be a fine and interest on the amount due.
DETAILS:
- Under Section 234B of the Income Tax Act, if advance tax is not paid, interest is charged at 1% per month on the amount of tax due.
- Under Section 271C, if a taxpayer fails to pay advance tax, they may face a penalty of 100% of the tax amount not paid.
PUNISHMENT / IMPLICATIONS (if applicable):
- Interest charged can accumulate over time, increasing the total amount payable.
- Penalty can be imposed in addition to the tax due.
SOURCE:
- Income Tax Act, 1961
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