Section 101A: Penalty for failure to join electronic system

101A. Penalty for failure to join electronic system Any registered employer who is required to submit his PAYE return under section 100 (1A) and make payment of tax withheld on behalf of his employees electronically, but fails to join the electronic system, after written notice being given to him by the Director-General, shall be liable to pay to the Director-General on his failure within a period of 7 days from the date of the notice to justify the failure to join the system, a penalty of 5,000 rupees, for every month or part of the month from the month specified in the notice, up to the month immediately preceding the month in which he submits his I5 – 55 [Issue 9] Income Tax Act return, and to make any payment of tax withheld electronically, provided that the total penalty payable shall not exceed 50,000 rupees. [S. 101A inserted by s. 18 (zd) of Act 15 of 2006 w.e.f. 1 July 2006 in respect of the income year commencing on 1 July 2006 and in respect of every subsequent income year.]