The government is imposing a penalty on the company for failure to collect tax at source. The penalty is imposed under section 80g of the Income Tax Act.
Income tax act imposes a penalty of Rs. 10,000 for failure to collect tax at source.
The penalty is imposed under section 80g of the Income Tax Act.
The penalty for failure to collect tax at source is a penalty imposed by the Income Tax Act, 1961 on any person who fails to collect tax at source.
The penalty is as follows:
a) where the total amount of tax not collected at source exceeds Rs. 10,000 in a financial year, the penalty shall be 100% of such amount; or
b) where the total amount of tax not collected at source exceeds Rs. 1 lakh but does not exceed Rs. 10 lakh in any financial year, the penalty shall be 5% of such amount; or
c) where the total amount of tax not collected at source does not exceed Rs. 1 lakh in any financial year, no penalty shall be imposed under this section.
our firm provide services of 80g.
The penalty for failure to collect tax at source is an amount equal to the amount of tax that should have been collected.