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14.5. Interest and Penalties

Following interest and penalties are levied:

  • Delay in provisional tax payments attracts a penalty of 10% of the tax due every month
  • Under estimation of provisional tax payments attracts a penalty of up to 100% of the underpaid amount
  • Delay in the filing of tax return attracts a penalty of 10% of outstanding tax if taxes are paid after the due date of filing of a tax return
  • Failure to file or filing of incorrect tax return attracts a penalty of up to 200% of understatement of tax
  • Late payment of tax attracts 20% interest