A tax is a tranche that is paid to the government by the individual citizen and varies hierarchically about their income amount taken as a payment for the functioning of the government. A certain amount of money has to be paid as a fine by the individual for defiant behavior when they forget to pay their tax money, which is called a tax penalty.
An individual is responsible for paying the penalty amount under section 271H of the Income Tax Act if they fail to submit the statement of tax deducted at a source by the deadline.
271H. Penalty for failure to furnish statements came into effect on the first day of July 2012. it includes the following directives wherein
- If the taxpayer fails to file their tax statement on/before the stipulated time, then he/she must pay the amount of penalty under this section.
- If the taxpayer produces false or incorrect information in their tax statement, then he/she is liable to pay the penalty amount under this section.
- The penalty amount shall range from a minimum of 10000 rupees to one lakh rupees.
On discoursing about the back payroll taxes, it is a tranche that is held back by the employer from the employee’s paycheck to cover up various other tax amounts that are to be paid to the IRS, state and local tax body in your name. These taxes include social security tax, Medicare taxes and also unemployment taxes.
- Social security taxes are those which are collected on an account of disability, spousal benefits, and survivor aid by 6.2%
- Hospital insurance taxes are taken up from the employee’s pay to cover one’s hospital and healthcare-related charges by about 1.45% and an additional Medicare of 0.9% is taken up by the IRS.
- Unemployment taxes are the payroll tax that acts as a benefit when one loses their job, its share ranges up to 6% of the employee’s pay.
In brief, failure in paying these taxes is considered theft and the person is subjected to penalty once again. To avoid these legal issues, pay your taxes on time and maintain a record of them.