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of <h1>Failing to pay tax deducted at source may lead to up to two years' imprisonment and a fine.</h1> A person who fails to pay the tax deducted or collected at source, or the dividend distribution tax, to the Central Government may face rigorous imprisonment for up to two years and a fine. The fine must be at least three percent of the unpaid tax for each month or part thereof during the period of default, starting from when the payment was due until the payment is made or conviction occurs, whichever is earlier.
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