Section 273 - False estimate of, or failure to pay, advance tax

Advance tax penalties apply where an assessee submits untrue estimates or fails to furnish or pay required advance tax.

An assessing officer may direct payment of a penalty where an assessee furnishes an advance-tax estimate known to be untrue or fails to furnish or pay advance tax; the penalty ranges from a minimum of ten per cent to a maximum up to one and a half times the amount by which tax actually paid falls short of prescribed benchmarks of the assessed tax or the amount stated in a correct statement or notice, with a higher benchmark prescribed for companies and special provisions for counting payments made after an extended due date.