Income Tax Act 2023
Section 271 - Failure to Pay Tax on the Basis of Return
(as updated till Finance Act 2024)
Where, in the course of any proceeding under this Act, the Deputy Commissioner of Taxes is satisfied that any person has not paid 1[admitted tax liability], he may impose upon such person a penalty of a sum not exceeding 25% (twenty-five) percent of the whole of the tax or, as the case may be, of such portion of the tax as has not been paid.
1 The words “admitted tax liability” were substituted for the words “tax as required by section 173” by section 75 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
Disclaimer: This is the authentic English text of the Income Tax Act 2023, as published under SRO No. 404-Law/2025 dated 08 October 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.