For the asking: Assessee in default

| Updated on March 27, 2011

BL28FOR_THE_ASKING   -  The Hindu

What are the consequences if an employer fails to deposit the tax deducted from his employees' salary?

Kumar, e-mail

First, the employer has to pay an interest of 1.5 per cent a month or any part thereof till he actually deposits the tax into the government treasury and in addition he is treated as an assessee in default, liable to further penal consequences including monetary penalty not exceeding the tax that he has not deposited.

He may also be awarded a minimum three month rigorous imprisonment and a maximum seven year rigorous imprisonment, together with penalty in a criminal proceeding.

No personal tax in UAE

Why is there no personal tax in UAE?

Krishna Chaitanya, Bapatla

The rulers there spare the citizens of the burden of taxation thanks to the sizeable revenues from sale of oil in the international market. With this money they can easily build physical and social infrastructure, the main objective of collecting taxes.

Disinvestment proceeds

What will the government do with the proceeds of disinvestment?

Malika Shenoy, Bangalore

The proceeds from divestment of shares by government in public sector undertakings must not be used government companies for meetingroutine non-Plan expenditure such as like salary of employees etc.

They must be spent preferably in the realms of social infrastructure such as universal primary education and health care.

Economic infrastructure such as electricity, roads and water too can be just claimants for dipping into such proceeds.

Banana Republic

What is a banana republic?

Shailaja Prohit, Nagpur

It refers to economies that are controlled by foreign capital and whose strength lies in the export of a single commodity or raw material.

There are quite a few countries in Central America which were at the tender mercies of the United States and of the European nations by being dependent on their patronage for their only product — bananas.

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Published on March 27, 2011

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