Section 182 of the Income Tax Ordinance 2001 outlines the penalties for failing to deposit tax dues on time or in the prescribed manner. Specifically, it details the consequences of such a default and provides a mechanism for penalty reduction.
Penalty for Failure to Deposit Tax
Any individual who fails to deposit the amount of tax due, or any part thereof, according to the time and manner specified in the Income Tax Ordinance 2001 and its associated rules, is liable to a penalty. This section serves to enforce tax compliance and ensures timely revenue collection for the government.
Penalty Reduction
The Ordinance provides some relief. If an individual defaults on their tax obligations, the penalty payable is reduced by 50%. This reduced penalty is calculated as five percent of the amount of the tax in default.
In summary, Section 182 of the Income Tax Ordinance 2001 deals with the penalties imposed on individuals who fail to deposit their taxes on time or as prescribed, offering a 50% reduction resulting in a penalty of 5% of the defaulted tax amount.
