alleryStart learning →If a company fails to withhold tax, who may face penalties?
AOnly the payee itself
BThe company or officers
CThe tax authority only
DOnly the shareholders
Answer & Solution
Correct answer: B. The company or officers
Withholding is not the company's own tax, yet penalties may fall on the company, its officers or employees for failing to withhold and pay over.
Keep practising Taxation of Companies
Browse all Taxation of Companies questions for CA Final, or explore more Taxation topics.
Related questions
Which section imposes a late fee for delay in filing the return?Under-reported income attracts a penalty of what share of tax under section 270A?A defective return must be rectified within how many days of notification?A revised return to correct an omission is filed under which section?Which section governs a belated income-tax return?Cumulatively, what share of advance tax must be paid by 15 December?What is the rate of health and education cess levied on the tax of a company in India?Income tax is generally computed as tax rate multiplied by what?