The federal budget for the upcoming fiscal year, 2023-24, proposes harsh penalties for those who fail to file their tax returns. This bold step aims to tackle the issue of late tax filing and ensure compliance among taxpayers. Section 165 of the tax code recommends a fine of 2,000 rupees for individuals who do not submit their withholding statements.
But that’s not all – the consequences for tax defaulters are even more severe. The proposal suggests an additional penalty of 200 rupees per day for those who default on their taxes, while the penalty for not filing tax returns at all could skyrocket to a staggering 25 percent.
The government’s message is clear: evading taxes will no longer be tolerated. The decision to impose such strict penalties is an attempt to streamline the tax collection process and ensure that everyone contributes their fair share to the nation’s development.
So, if you’ve been putting off filing your tax returns, think twice. The clock is ticking, and the consequences could be dire. Make sure you fulfill your civic duty and avoid becoming a victim of these hefty penalties.