What is Section 266 of the ITA-2023 about?

Section 266 of the Income Tax Act 2023 specifies penalties for taxpayers who fail to file their income tax return without reasonable cause. It empowers the Deputy Commissioner of Taxes to impose monetary penalties and daily fines for continued default.

What is the penalty for failing to file an income tax return under Section 266?

Under Section 266 of the ITA-2023, a person who fails to file a return may face a penalty equal to 10% of the tax on the last assessed income, with a minimum fine of Taka 1,000. For continuing defaults, an additional penalty of Taka 50 per day may apply.

Who can impose the penalty for non-filing of income tax return?

The Deputy Commissioner of Taxes has the authority to impose penalties under Section 266 of the ITA-2023 if a taxpayer fails to file a return within the prescribed time and without reasonable cause.

Can the penalty under Section 266 be reduced or waived?

Yes, in certain cases, if the taxpayer provides reasonable cause for the failure to file the return or rectifies the default promptly, the tax authority may consider reducing or waiving the penalty at its discretion.

How can I avoid penalties under Section 266 of ITA-2023?

To avoid penalties, ensure your income tax return is filed accurately and within the due date. Keep all financial records organized, consult a tax professional for guidance, and respond promptly to any tax notices received.

“Penalty for Failure to File Income Tax Return Under Section 266 of ITA-2023 – Tax Compliance Guide”

Penalty for failure to file a return

Penalty for failure to file a return under Section 266 of ITA-2023:

(1) Where any person, without reasonable cause, fails to file a return of income as required under sections 166, 172, 191, 193, or 212, the Deputy Commissioner of Taxes may impose a penalty as follows:

· A sum equal to 10% (ten percent) of the tax imposed on the person’s last assessed income, subject to a minimum penalty of Taka 1,000 (one thousand); and

· In the case of a continuing default, an additional penalty of Taka 50 (fifty) shall be imposed for each day the default continues.

Provided that the total penalty shall not exceed—
(a) Taka 5,000 (five thousand), if the assessee is an individual whose income was not previously assessed; or
(b) 50% (fifty percent) of the tax payable on the last assessed income or Taka 1,000 (one thousand), whichever is higher, if the assessee is an individual whose income was previously assessed.

(2) Where any person, without reasonable cause—

(a) Fails to file or furnish any return or information required under section 177, the Deputy Commissioner of Taxes may impose a penalty equal to—

· 10% (ten percent) of the tax imposed on the last assessed income, or

· Taka 5,000 (five thousand), whichever is higher;
and, in the case of a continuing default, an additional penalty of Taka 1,000 (one thousand) shall be imposed for each month or part thereof during which the default continues.

(b) Fails to furnish any certificate required under section 145, the Deputy Commissioner of Taxes may impose a penalty of up to Taka 5,000 (five thousand), and in the case of a continuing default, an additional penalty of Taka 1,000 (one thousand) shall be imposed for each month or part thereof during which the default continues.

(c) Fails to file or furnish any information required under section 200, the Income Tax Authority requiring such information may impose a penalty of up to Taka 50,000 (fifty thousand), and in the case of a continuing default, an additional penalty of Taka 500 (five hundred) shall be imposed for each day the default continues.

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Penalty for failure to file a return under Section 266 of ITA-2023

Penalty for failure to file a return under Section 266 of ITA-2023:

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