Failure to pay tax deducted or collected at source triggers criminal liability and mandatory monthly fines for default.

Failure to remit tax deducted or collected at source under sub chapter A or B of Chapter XI, or dividend distribution tax under section 207, attracts criminal liability with rigorous imprisonment up to two years and a fine. The fine is mandatory and fixed at not less than three per cent of the tax for each month or part of a month from the date the amount was due until payment or conviction, whichever occurs earlier.

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