A minimum penalty of Rs10,000 has been fixed for defaulting withholding statements where no tax is required to be deposited. According to the Federal Board of Revenue (FBR), the amendment has been brought into Section 182 of Income Tax Ordinance, 2001 through Tax Laws (Second Amendment) Ordinance, 2021. The chartered accountants said that prior to the amendment following penalties are prescribed for non-filing of statements under sections 165, 165A or 165B within due date: a) Rs5,000 where the person has deposited the tax withheld within due date and the statement is filed within 90 days; and b) in all other cases, Rs2,500 for each day of default with a minimum penalty of Rs10,000. However, a new proviso has been inserted whereby a minimum penalty has been prescribed at Rs10,000 in cases where there is no tax withholding to be deposited in a particular period. It is pertinent to mention here that penalty amounts for late return filing have been reduced up to 75 percent in order to encourage people to make compliance with mandatory filing of declaration of income.