In order to give the taxpayer a chance to defend himself, subject to giving notice under section 130, the defaulting taxpayer may impose a penalty of 10% of the last imposed income tax or at least Rs. 1,000,000 and Rs . . However, according to the provisions added by the Finance Act 2015 - (1) the total penalty to be levied on any individual-taxpayer , whose income has never been taxed before , shall not exceed Rs . 5,000 / - ; ( 2) In the case of an individual-taxpayer , whose income has already been taxed, the amount of such penalty shall be 50% of the tax levied on his last assessed income or Rs.1,000 / - , whichever is higher . Will not |