Section 182

S.

No.

Offences

Penalties

Section of the Ordinance to which

offence has reference

(1)

(2)

(3)

(4)

1.

Where any person fails to furnish a return of income as required under section 114 within the due date.

Such person shall pay a penalty equal to 0.1% of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50% of the tax payable provided that if the penalty worked out as aforesaid is less than forty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of forty thousand

rupees

114 and 118

Provided that If seventy-five percent of the income is from salary and the amount of income under salary is less than five million Rupees, the minimum amount of penalty shall be five thousand Rupees.

Explanation.— For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under

section 120, 121, 122 or 122C.

1A.

Where any person fails to furnish a statement as required under section

165, or 165A , 165A

or 165B within the due date.

Such person shall pay a penalty of Rs.5000 if the person had already paid the tax collected or withheld by him within the due date for payment and the statement is filed within ninety days from the due date for filing the statement and, in all other cases, a penalty of Rs.2500 for each day of default from the due date subject to a minimum penalty of Rs.10,000.

165and165A,

165A and 165B

1AA.

Where any person fails to furnish wealth statement or wealth reconciliation

statement.

Such person shall pay a penalty of “0.1% of the taxable income per week or Rs.100,000 whichever is

higher.”

114, and 116

IAAA

Where any person fails to furnish a foreign assets and income statement

within the due date.

Such persons shall pay a penalty of 2 percent of the foreign income or value of the foreign assets for

each year of default.

116A

2.

Any person who fails to issue cash memo or

Such person shall pay a penalty of five thousand rupees or three per

174 and Chapter VII of the Income Tax Rules.

invoice or receipt when required under this Ordinance or the rules

made there under.

cent of the amount of the tax involved, whichever is higher.

3.

Any person who is required to apply for registration under this Ordinance but fails to

make an application for registration.

Such person shall pay a penalty of

¹[ten] thousand rupees.

181

4.

Any person who fails to notify the changes of material nature in the

particulars of registration.

Such person shall pay a penalty of five thousand rupees.

181

4A

Any person who is required to furnish or update a taxpayer’s profile

but fails to furnish or update within the due date.

Such a person shall pay a penalty of Rs. 2,500 for each day of default from the due date subject to a minimum penalty of Rs.10,000.

114A

4B

Any person who contravenes the provisions of section 181AA.

Such a person shall pay a penalty at the rate of Rs. 10,000 for each

connection provided to an unregistered person.

181AA]

5.

Any person who fails to deposit the amount of tax due or any part thereof in the time or manner laid down under this Ordinance or rules made there under.

Provided that if the person opts to pay the tax due on the basis of an order under section 129 on or before the due date given in the notice under sub-section (2) of section

137 issued in consequence of the said order, and does not file an appeal under section131

the penalty payable shall be reduced by50%.

Such person shall pay a penalty of five per cent of the amount of the tax in default.

For the second default an additional penalty of 25% of the amount of tax in default.

For the third and subsequent defaults an additional penalty of 50% of the amount of tax in default.

137

6.

Any person who repeats erroneous calculation in the return for more than one year whereby amount of tax less than the actual

tax payable under this Ordinance is paid.

Such person shall pay a penalty of thirty thousand rupees or three per cent of the amount of the tax involved, whichever is higher.

137

7.

Any person who fails to maintain records required under this Ordinance or the rules made there under.

Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax on income whichever is higher.

174,108

8.

Where a taxpayer who, without any reasonable cause, in non-compliance

with provisions of section 177—

177

(a) fails to produce the record of documents on receipt of first notice.

Such person shall pay a penalty of

twenty-five thousand rupees;

(b) fails to produce the record or documents on receipt of second notice;

and

such person shall pay a penalty of

fifty thousand rupees; and

(c) Fails to produce the record or documents on receipt of

third notice.

such person shall pay a penalty of

one hundred thousand rupees.

9.

Any person who fails to furnish the information required or to comply with any other term of the notice served under

section 176 or 108.

Such person shall pay a penalty of twenty-five thousand rupees for the first default and ⁷[fifty] thousand rupees for each subsequent default.

176

10.

Any person who—

(a) makes a false or misleading statement to an Inland Revenue Authority either in writing or orally or electronically including a statement in an application, certificate, declaration, notification, return, objection or other document including books of accounts made, prepared, given,

filed or furnished under this Ordinance;

Such person shall pay a penalty of twenty five thousand rupees or100% of the amount of tax shortfall whichever is higher:

Provided that in case of an assessment order deemed under section 120, no penalty shall be imposed to the extent of the tax shortfall occurring as a result of the taxpayer taking a reasonably arguable position on the application of this Ordinance to the taxpayers’ position.

114, 116, 174, 176,

177 and general

(b) furnishes or files a false or mis-leading information

or document or statement to an Income

Tax Authority either in

writing or orally or electronically;

(c) omits from a statement made or information furnished to an Income Tax Authority any matter or thing without which the statement or the information is false or misleading in a

material particular.

11.

Any person who denies or obstructs the access of the Commissioner or any officer authorized by the Commissioner to the premises, place, accounts, documents, computers or

stocks.

Such person shall pay a penalty of ¹[fifty] thousand rupees or one hundred per cent of the amount of tax involved, whichever, is higher.

175 and 177

12.

Where a person has concealed income or furnished inaccurate particulars of such income, including but not limited to the suppression of any income or amount chargeable to tax, the claiming of any deduction for any expenditure not actually incurred or any act referred to in sub-section (1) of section 111, in the course of any proceeding under this Ordinance before any Income Tax authority or the appellate tribunal.

Such person shall pay a penalty of one hundred thousand rupees or an amount equal to the tax which the person sought to evade whichever is higher. However, no penalty shall be payable on mere disallowance of a claim of exemption from tax of any income or amount declared by a person or mere disallowance of any expenditure declared by a person to be deductible, unless it is proved that the person made the claim knowing it to be wrong.

20, 111 and General

13.

Any person who obstructs any Income Tax Authority

in the performance of his official duties.

Such person shall pay a penalty of twenty five thousand rupees.

209, 210 and General.

14.

Any person who contravenes any of the provision of this Ordinance for which no penalty has, specifically,

been provided in this section.

Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, which-ever is higher.

General.

15.

Any person who fails to collect or deduct tax as required under any provision of this Ordinance or fails to pay the tax collected or deducted as required under

section 160.

Such person shall pay a penalty of ³[forty] thousand rupees or the 10% of the amount of tax which-ever is higher.

148, 149, 150, 151,152,

153, 153A, 154, 155,

156, 156A, 156B, 158,

160, 231A, 231B, 233,

233A, 234, 234A, 235,

236, 236A,

16.

Any person who fails to display his NTN at the place of business as required under this Ordinance or the rules

made there under.

Such person shall pay a penalty of five thousand rupees.

181C

17.

Any reporting financial institution or reporting entity who fails to furnish information or country-by- country report to the Board as required under section 107, 108 or 165B within the

due date.

Such reporting financial institution or reporting entity shall pay a penalty of two thousand rupees for each day of default subject to a minimum penalty of twenty five thousand rupees.

107, 108 and 165B

18.

Any person who fails to keep and maintain document and information required under section 108 or Income Tax

Rules, 2002.

1% of the value of transactions, the record of which is required to be maintained under section 108 and Income Tax Rules, 2002.

108

19.

Where any manufacturer of a motor vehicle accepts or processes any application for booking or purchase of a locally manufactured motor vehicle in violation of the provisions of clause(a)of

section 227C

Such person shall pay a penalty of 5 percent of the value of the motor vehicle

227C

20.

(i) Where any registering authority of Excise and Taxation Department accepts, processes or registers any application for registration of a locally manufactured motor vehicle or for the first registration of an imported vehicle in violation of the provisions of clause (a) of section227C

(ii) Where any authority responsible for registering, recording or attesting the transfer of immovable property accepts or processes the registration or attestation of such property in violation of the provisions of clause(b)of section 227C

Such person shall pay a penalty of 3 percent of the value of motor vehicle or immovable property.

227C

21.

Any person who purchases immovable property having fair market value greater than rupees five million through cash or bearer cheque.

Such person shall pay a penalty of five percent of the value of property determined by the Board under sub- section (4) of section 68 or by the provincial authority for the purpose of stamp duty, whichever is higher.

75A

22.

Where an offshore tax evader is involved in offshore tax evasion in the course of any proceedings under this Ordinance before any Income Tax authority or the appellate tribunal.

Such person shall pay a penalty of one hundred thousand rupees or an amount equal to two hundred per cent of the tax which the person sought to evade, whichever is higher.

General

23.

Where in the course of any translation or declaration made by a person an enabler has enable, guided, advised or managed any person to design, arrange or manage that transaction or declaration in such a manner which has resulted or may result in offshore tax evasion in the course

of any proceedings under this Ordinance.

Such person shall pay a penalty of three hundred thousand rupees or an amount equal to two hundred per cent of the tax which was sought to be evaded, whichever is higher.

General

24.

Any person who is involved in asset move as defined in clause (5C) of section 2 of the Ordinance from specified territory to an un-specified territory.

Such person shall pay a penalty of one hundred thousand rupees or an amount equal to one hundred per cent of the tax whichever is higher.

General

25.

Where a Reporting Financial Institution fails to comply with any provisions of section 165B of the Ordinance or Common Reporting Standard Rules in Chapter XIIA of Income Tax Rules, 2002.

Such Reporting Financial Institution shall pay a penalty of Rs.10,000 for each default and an additional Rs. 10,000 each month until the default is redressed.

26.

Where a Reporting Financial Institution files an incomplete or inaccurate report under provisions of section 165B of the Ordinance and Common Reporting Standard Rules in Chapter XIIA of Income Tax Rules, 2002.

Such Reporting Financial Institution shall pay a penalty of Rs.10,000 for each default and an additional Rs. 10,000 each month until the default is redressed.

27.

Where a Reporting Financial Institution fails to obtain valid self- certification for new accounts or furnishes false self-certification for new accounts or furnishes false self-certification made by the Reportable Jurisdiction Person under Common Reporting Standard Rules in Chapter XIIA of Income Tax Rules, 2002.

Such Reporting Financial Institution shall pay a penalty of Rs.10,000 for each default and an additional Rs. 10,000 each month until the default is redressed.

28.

Where a Reportable Jurisdiction Person fails to furnish valid self- certification or furnishes false self-certification under Common Reporting Standard Rules in Chapter XIIA of Income Tax Rules, 2002.

Such Reporting Financial Institution shall pay a penalty of Rs.5,000 for each default and an additional Rs. 5,000 each month until the default is redressed.