KAIT Act 63Chapter IX · Collection and Recovery of Tax and Penalties

Section 63 · Penalty payable when tax in default

(1)

When an assessee is in default in making payment of tax, he shall, in addition to the amount of the arrears and the amount of interest payable under subsection (4) of section 37 be liable, by way of penalty, to pay such amount as the Agricultural Income Tax Officer may direct, and in the case of a continuing default such further amount or amounts as the Agricultural Income Tax Officer, may, from time to time direct so however, that the total amount of penalty does not exceed the amount of tax in arrears:Provided that before levying any such penalty 1he assessee shall be given a reasonable opportunity of being heard.Explanation: - For the removal of doubt, it is hereby declared that an assessee shall not cease to be liable to any penalty under this subsection merely for the reasons that before the levy of such penalty, he has paid the tax or the Agricultural Income Tax Officer has initiated any proceedings for the recovery of the amount.

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