Penalty and Imposing Authorities A penalty is an additional amount imposed on the assesse for violation of tax law by the

respective authorities on the basis of tax law. The following authorities are entitled to impose penalty on the assesse within their power: Deputy commissioner of Taxes(DCT) Appellate joint commissioner of taxes Appellate tribunal

Conditions to Impose Penalty: No penalty can be imposed on the assesse without notice. Written notice need not to be served always. He should be allowed to defend his case. Offences and Penalties under Income Tax Ordinance: Number of Offences Penalty for not maintaining accounts in prescribed manner (Sec.123) : Amount of Penalties a) A sum not exceeding one and a half time the amount of tax payable by him. b) If the total income does not exceed minimum taxable limit, the amount of penalty may be a sum upto tk. 100. a) A sum of 10% of the income tax of last assessment or Tk. 1000 & Tk. 50 for per default