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What happens if a small business owner doesn't pay their taxes on time?
Curious about Small-Business Taxes
If a small business owner doesn't pay their taxes on time, they may face penalties and interest charges. The amount of the penalty can vary depending on how late the payment is and how much is owed. In India, the penalty for late payment of taxes is 1% per month or part of the month on the outstanding amount, subject to a maximum of 12%. Additionally, interest is charged on the outstanding amount at a rate of 1% per month or part of the month until the tax is paid in full. Continued failure to pay taxes may result in legal action being taken against the business owner, such as the seizure of assets or prosecution. It is important to file and pay taxes on time to avoid these consequences.
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