CAF-2 · Chapter 15 · Question 13 of 15
If a registered person voluntarily files a revised return and deposits the tax sought to be evaded along with default surcharge during an audit, but before the issuance of a show-cause notice under section 122(9), what is the penalty consequence?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) 25% of the leviable penalty must be paid.
Explanation
If the taxpayer deposits the amount pointed out during the audit (or before the show cause notice), he shall deposit the evaded tax, default surcharge, and 25% of the penalties leviable. (If done before notice of audit, 0% penalty; if after show cause, 50% penalty).
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