Penalty for tax default: officer may impose penalties capped at the tax in arrears, with hearing and remission discretion. The substituted section 221(1) permits the Income-tax Officer to impose a penalty, in addition to arrears and interest, where an assessee defaults or is deemed in default in tax payment; further penalties for continuing default may be directed, provided the total penalty does not exceed the tax in arrears, and penalties may not be levied without a reasonable opportunity of being heard and may be waived where the default is for good and sufficient reasons.