Income Tax Ordinance, 2001

CHAPTER-X

PROCEDURE PART X PENALTY

From: 2023-07-01 - To: 0000-00-00 1[183. Exemption from penalty and default surcharge.- The Federal Government may, by notification in the official Gazette, or the Board by an order published in the official Gazette for reasons to be recorded in writing, exempt any person or class of persons from payment of the whole or part of the penalty and default surcharge payable under this Ordinance subject to such conditions and limitations as may be specified in such notification or, as the case may be, order.] _________________________________________ 1-Section 183 was substituted vide Finance Act, 2010 (XVI of 2010). At the time of substitution section 183 was as under:-- “183. Penalty for non-payment of tax.- (1) A taxpayer who fails to pay any tax (other than penalty i[imposed under this section)] due under this Ordinance by the due date shall be liable for a penalty equal to – (a) in the case of the first default, five per cent of the amount of tax in default; (b) in the case of a second default, an additional penalty of twenty per cent of the amount of tax in default; (c) in the case of a third default, an additional penalty of twenty-five per cent of the amount of tax in default; and (d) in the case of a fourth and subsequent default, an additional penalty of up to fifty per cent of the amount of tax in default as determined by the Commissioner, but the total penalty in respect of the amount of tax in default shall not exceed one hundred per cent of such amount of tax. (2) Where, in consequence of any order under this Ordinance, the amount of tax in respect of which any penalty imposed under sub-section (1) is reduced, the amount of the penalty shall be reduced accordingly.” i. The words were inserted vide the Finance Act, 2003 (I of 2003 assented on 16th June, 2003) From: 2010-07-01 - To: 2023-06-30 1[183. Exemption from penalty and default surcharge.- The Federal Government may, by notification in the official Gazette, or the Board by an order published in the official Gazette for reasons to be recorded in writing, exempt any person or class of persons from payment of the whole or part of the penalty and default surcharge payable under this Ordinance subject…