Penalty Payable when tax in default - Section 412 (New) / Section 221 (Old)

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....penalty is leviable in addition to the amount of tax in arrears and the interest payable under section 411(3). The provision also prescribes the maximum quantum of penalty, safeguards before levy, and the consequences where the underlying tax demand is subsequently reduced. Section 412(1) - Levy of Penalty Where an assessee is in default or deemed to be in default in making payment of tax, t....

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....e satisfaction of the Assessing Officer that the default occurred due to good and sufficient reasons. Section 412(4) - Payment of Tax not a Bar to Penalty The subsequent payment of tax before levy of penalty does not absolve the assessee from liability to penalty. Accordingly, the Assessing Officer may levy penalty even if the tax has been paid before the penalty order is passed. Secti....

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....er Nature of penalty Penalty in addition to tax in arrears and interest payable. Penalty in addition to tax in arrears and interest payable under section 411(3). Continuing default Further penalty may be imposed from time to time. Further penalty may be imposed from time to time. Maximum penalty Shall not exceed the amount of tax in arrears. Sh....