Question

What do you know about tax penalty, what s it? for what purpose? How it is assessed?

Answer 1

• Tax penalty is owed for those who under pay their Estimated tax.
• Penalty occurs when we didn't pay the required tax because of some unexpected circumstances.
• It can also be caused when someone retires or become disabled before the estimated payment.

  

• Tax penalties are usually the penalties,an individual has to pay for the under payment of their Estimated tax.
• If we didn't pay enough tax through out the year
• By with holding the amount.
• We may have to pay penalty for their under payment.

• It is Assessed using an income tax system.
• The tax payers should make estimated tax payments .
• In four equal Amounts.
• In order to avoid a penalty.