(1) Where a person under the provisions of this Part-

(a) fails to deduct or collect tax at source; or

(b) deducts or collects tax at a lesser rate or in lesser amount; or

(c) after deducting or collecting tax, fails to deposit the same to the credit of the Government, or deposits to the credit of the Government an amount lower than the collected or deducted amount; or

(d) fails to comply with any other requirement, such person shall be deemed to be an assessee-in-default.

(2) A person deemed to be an assessee-in-default under sub-section (1), without prejudice to any other consequences to which he may be liable under this Act, shall be liable to pay the following sums, as the case may be, namely:—

(a) the amount of tax that has not been deducted or collected;

(b) the amount equal to the difference between the amount required to be deducted or collected and the amount actually deducted or collected; or

(c) the amount that, after being collected and deducted, has not been paid to the credit of the Government; or

(d) an amount not exceeding Taka 10 (ten) lakh for failing to comply with any other provisions.

(3) In addition to the amount as mentioned in sub-section (1), the person, deemed to be an assessee-in-default, shall also be liable to pay an additional amount at the rate of 2% (two percent) per month on the amount as mentioned in clauses (a), (b) and (c) of sub-section (2) provided in the table below, namely:—

(4) The period for computation of additional amount under sub-section (3) shall be from the date fixed for deduction or collection of tax at source to the date of deposit in the Government Treasury:

      Provided that such period shall not exceed 24 (twenty four) months.

(5) The Deputy Commissioner of Taxes shall take necessary action for the realization of the additional amount mentioned in sub-section (3) including the amount payable under sub-section (2) from the person referred to in sub-section (1) after giving such person a reasonable opportunity of being heard.

(6) Where the person responsible for deducting or collecting tax is the Government, any authority, corporation or body of the Government- including its units a project or program or activity in which government has any financial or operational involvement—

(a) the natural person or persons responsible for approving or allowing the payment; or

(b) the natural person or persons responsible for allowing or approving or granting any clearance, registration, license, permits, shall be jointly and separately liable to pay taxes, penalty or additional amount under this section.

(7) Where any person or organization other than the Government, government institution, authority, unit, project, program, organization, unit or activity in which Government has any financial or operational involvement, is responsible to deduct or collect tax, in such case—

(a) the person or the organization itself; and

(b) the individual or individuals responsible for approving or allowing the payment—

shall be jointly and separately liable to pay taxes, penalty or additional amount under this section.

(8) If the person from whom the tax is collectable or deductible has already fully paid all the amounts mentioned in sub-sections (2) and (3), no action shall be taken to collect the amount mentioned in sub-sections (2) and (3).