Section 44 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
- (1)Every person who is an assessee in default, or an assessee deemed to be in default, as the case may be, in making payment of tax, and in case of continuing default by such assessee, he shall be liable to a penalty of an amount, equal to the amount of tax arrear.
- (2)An assessee shall not cease to be liable to any penalty under sub-section (1) merely by reason of the fact that before the levy of such penalty he has paid the tax.
Summary
- This provision applies to anyone who does not pay their tax dues on time.
- An "assessee in default" is someone who has missed the payment deadline for the tax they owe.
- The penalty for this default is a sum equal to the total amount of the tax arrears.
- If the default continues, the person remains liable for this penalty.
- Simply paying the tax later does not automatically cancel the penalty if it has already been decided.
Practical examples
FAQ
1. What is the penalty for not paying tax arrears under Section 44 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
The penalty is an amount equal to the tax arrear itself.
2. If I pay the tax before the penalty is officially charged, am I safe under Section 44 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
No, Section 44 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, states that an assessee does not cease to be liable just because they paid the tax before the penalty was levied.
3. Who is liable for the penalty in Section 44 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
Any person who is an "assessee in default" or is "deemed to be in default" for not making the tax payment is liable.
Test yourself
Q1.Under Section 44 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, how is the penalty amount determined for a default in payment?
Q2.According to Section 44 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, what happens if an assessee pays the tax after the deadline but before the penalty is issued?
Q3.If someone owes 5 lakh rupees in tax under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, and defaults, what is their total liability (tax plus penalty)?
Q4.Which term describes someone who hasn't paid their dues under Section 44 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?