In India, if an individual or a company fails to pay their taxes on time or files their tax returns after the due date, they may be subject to penalties and interest charges. Here are some of the penalties for delay in tax payments by individuals and companies:
- Late filing fee: If an individual or company fails to file their tax return by the due date, a late filing fee of up to INR 10,000 may be charged depending on the delay.
- Interest charges: If an individual or company fails to pay their tax on time, they may be charged interest at the rate of 1% per month or part thereof until the outstanding tax is paid.
- Penalty for under-reporting of income: If an individual or company under-reports their income, a penalty of 50% to 200% of the tax amount may be levied, depending on the severity of the under-reporting.
- Penalty for incorrect information: If an individual or company provides incorrect information in their tax return, a penalty of INR 10,000 to INR 100,000 may be levied, depending on the nature of the incorrect information.
- Prosecution: In extreme cases, individuals or companies may be prosecuted for tax evasion, which can result in imprisonment and fines.
It’s important to note that the penalties and interest charges may vary depending on the specific circumstances of the case, and it’s always best to consult with a tax professional or the Income Tax Department to understand the specific penalties that may apply.
