(1) Any person shall be punished with rigorous imprisonment for a term which may extend to 1 (one) year, or with fine, or with both, if he, without reasonable cause—

(a) fails to levy or collect and pay the tax required under the provisions of Part 7;

(b) fails to collect and pay tax as required under sub-section (3) of section 221.

(2) If the amount of tax deducted, collected or paid does not exceed Taka 25 (twenty-five) thousand, then the provisions of sub-section (1) shall not apply.

(3) Where a person voluntarily deducts tax under sub-section (1) before being identified by the Income-tax authority, no case shall be instituted against such person for failure to deduct, collect or pay tax within the prescribed time.

(4) In case of continuing default, the penalty mentioned in sub-section (1) shall be calculated at such a rate which shall not be less than 100 (one hundred) Taka nor more than 500 (five hundred) Taka for each day during the consecutive failure period.