20DPenalty tax payable if assessable amounts understated

20D Penalty tax payable if assessable amounts understated

Where: (a) in a statement under section 18 or 20A, a person understates the assessable amount, or states incorrectly that there is no assessable amount, in relation to a repayment; and (b) as a result, the deduction that the authorized person is required to make under section 20B from the repayment is less by an amount (in this section called the lost withholding amount) than the deduction that would have been required if there had been a statement of the correct assessable amount; the person is liable to pay to the Commissioner, by way of penalty, an amount at the rate of 20% per annum, on the lost withholding amount, from the time of the repayment until: (c) where the assessable amount is included in the assessable income of the owner of the deposit concerned for the year of income in which the repayment is made—the time of making of the owner’s assessment for that year of income; or (d) where the assessable amount is included in the assessable income of the owner of the deposit concerned for an earlier year of income—the time of making, or amending, as the case requires, the owner’s assessment for that year of income.