Tax Penalties and Charges

 

Direct Taxes Act (as amended) The following penalty charges are foreseen in the Direct Taxes Act for non-compliance with tax regulations. Bases for calculation of charges % Subject Article Tax amount 2.5 per month Delay in payment of tax 190 Tax amount 40% 10% Non-submission of tax return - by legal entities * - by other tax-payers 192 Tax amount 20% 10% Non-presentation of statutory books Rejection of books 193 Salaries paid Contract amount 2% 1% Non-presentation of payroll lists Non-presentation of contracts 197 Taxes not withheld and paid 20% Failure to withhold and pay taxes (as applicable) 199 * May not be waived.