85. Payment of tax on demand.- (1) Where any tax is payable in consequence of any assessment or other order under this Ordinance, the Deputy Commissioner shall serve upon the assessee, or any other person liable to any such tax on behalf of the assessee, a notice of demand in the prescribed form specifying the sum payable; and thereupon the sum so specified shall be paid to the credit of the Federal Government within the time specified in the said notice.


(2) Notwithstanding anything contained in sub-section (1), where the assessee or any other person on whom a notice under the said sub-section has been served makes an application for granting stay of payment of tax or for allowing payment in instalments, the Inspecting Additional Commissioner may, subject to the provisions of section 89, stay the payment of tax till such time as he thinks fit or allow the payment of tax in such installments as he may determine [.]

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86. Charge of additional tax for failure to deduct and pay tax.- Where any person fails to deduct, or having deducted, fails to pay any tax, as required by section 50, such person shall, without prejudice to any other liability which he may incur, be liable to pay additional tax at the rate of eighteen percent per annum on the amount not paid for the period commencing from the date on which he was required to pay such tax to the date of the payment thereof.

87. Charge of additional tax for failure to pay advance tax.- (1) Where an assessee who was required to pay tax under sub-section (1) of section 53,-
(a) fails to pay any instalment; or
(b) fails to pay any instalment on or before the specified date; or
(c) fails to pay the full amount payable by him,

he shall, without prejudice to any other liability which he may incur under this Ordinance, be liable to pay additional tax at the rate of twenty-four per cent per annum on the amount not paid, and such additional tax shall be calculated from the date on which such amount was payable to the date on which it is paid or the thirtieth day of September of the financial year next following, whichever is the earlier.

(2) Where, in respect of any year, any assessee fails to pay tax under sub-section (4) of section 53 or the tax so paid is less than eighty per cent of the tax chargeable for the relevant assessment year, he shall be liable to pay additional tax at the rate of twenty-four per cent per annum on the amount of tax so chargeable or the amount by which the tax paid by him falls short of the said eighty per cent, as the case may be; and such additional tax shall be calculated from the first day of April in that year to the date on which assessment is made or the thirtieth day of June of the financial year next following, whichever is the earlier.

88. Charge of additional tax for failure to pay tax with the return.- Where any assessee fails to pay tax under section 54 or the tax so paid is less than the tax payable under that section, he shall be liable to pay additional tax at the rate of eighteen per cent per annum on the amount not paid or the amount by which the tax paid by him falls short of the tax payable under that section, as the case may be, and such additional tax shall be calculated from the first day of October or the date on which the tax was payable, whichever is the later, to the date on which the tax is paid or the date on which an order under sub-section (1) of section 59, section 59A, section 62, section 63 or section 65, as the case may be, is made, whichever is the earlier.

89. Charge of additional tax for failure to pay tax or penalty.- Where any assessee fails to pay the whole or any part of the tax levied under Chapter VII or the whole or any part of any penalty levied under Chapter XI, or has been allowed stay of payment or payment in instalments of the tax under sub-section (2) of section 85, he shall be liable to pay additional tax at the rate of eighteen per cent per annum on the amount of such tax or penalty or any part thereof, as the case may be, which has not been paid; and such additional tax shall be calculated from the date on which such tax or penalty or part thereof, as the case may be, was originally payable to the date on which it is paid or, in respect of each instalment, the date on which it is paid [.].

90. Reduction in additional tax, consequential to reduction in tax or penalty.-Where, in consequence of any order under this Ordinance, the amount of tax or penalty in respect of which additional tax is chargeable under section 86, 87, 88 or 89 is reduced, the additional tax, if any, levied under any of the aforesaid sections shall be reduced accordingly.

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91. Penalty for non-payment of tax.- (1) Where any assessee is in default in making payment of any tax (other than the tax payable under section 53) the Deputy Commissioner may impose on him a penalty not exceeding an amount equal to the said tax.

(2) The Deputy Commissioner may impose a penalty under sub-section (1) by one order or, in the case of a continuing default, by several orders, so, however, that the total amount of penalty does not exceed the amount of such tax.

(3) For the purpose of sub-section (1), any penalty imposed under that sub-section or any additional tax levied under section 86, 87, 88 or 89 shall be excluded from the amount of tax in respect of which the penalty is imposed.

(4) Where, after an order under sub-section (1) has been made, the Deputy Commissioner discovers, or the assessee proves to the satisfaction of the Deputy Commissioner, that the amount of tax, or any part thereof, in respect of which the said order was made, had been paid or any refund due to the assessee had not been set-off under section 104, before the date on which the said order was made, the Deputy Commissioner shall cancel or modify the said order, as may be necessary, and the provisions of section 156 shall, so far as may be, apply as they apply to the rectification of any mistake apparent from the record.

(4A) Where, in consequence of any order under this Ordinance, the amount of tax in respect of which penalty under this section was imposed is reduced, the amount of the said penalty shall be reduced accordingly.

(5) Notwithstanding anything contained in any law for the time being in force, no order of penalty made under sub-section (1) shall be called in question in any court, or tribunal or before any authority on the ground that-
(a) no show-cause notice was issued before the said order was made; or
(b) an application for stay of recovery of tax or the payment of tax in instalments had been pending before any court or tribunal or any other authority.

92. Recovery of tax from persons holding money on behalf of an assessee.- (1) For the purpose of recovering any tax payable by an assessee, the ¹⁷[Deputy Commissioner] may, by notice in writing, require any person-
(a) from whom any money is due or may become due to the assessee; or

(b) who holds, or controls the receipt or disposal of, or may subsequently hold, or control the receipt or disposal of, any money belonging to the assessee or on account of the assessee; or

(c) who is responsible for payment of any sum to the assessee to which section 50 applies, to pay to the Deputy Commissioner , in any case to which clause (a) or clause (b) applies, the sum specified in the notice on or before such date as may be so specified, or to deduct, in any case to which clause (c) applies, from any payment subsequent to the date of such notice any arrears of tax due from the assessee as specified in the said notice and the provisions of sub-sections (8) and (9) of section 50 and section 52 shall, so far as may be, apply as if the sum or the arrears of tax specified in the said notice, as the case may be, were a sum deductible under section 50.

(2) Any person who has paid any sum in compliance with a notice under sub-section (1) shall be deemed to have paid such sum under the authority of the assessee and the receipt of the Deputy Commissioner shall constitute a good and sufficient discharge of the liability of such person to the assessee to the extent of the sum referred to in such receipt.

(2A) If any person on whom a notice under sub-section (1) is served fails to pay, or to deduct, as the case may be, the amount specified in the said notice, such person shall be treated as an assessee in default and the amount specified in the said notice shall be recoverable from him by the Tax Recovery Officer or the Collector in accordance with the provisions of sections 93 and 94.

(3) For the purpose of this section, "person" includes any court, tribunal or any other authority.

93. Recovery of Tax by tax Recovery Officer.- (1) where any assessee is in default in making payment of tax, the Deputy Commissioner may forward to the Tax Recovery Officer a certificate in the prescribed form specifying the amount of tax due from the assessee.

(2) Where such certificate is received by the Tax Recovery Officer, he shall serve upon the assessee a notice in the prescribed form requiring him to pay the amount specified in the certificate within such time as may be specified in the notice.

(3) If the amount referred to in, the notice issued under sub-section (2) is not paid within the time specified therein or within the further time, if any, allowed by the Tax Recovery Officer, the Tax Recovery Officer may proceed to recover from the assessee the said amount by one or more of the following modes, namely:-

(a) attachment and sales of any movable or immovable property of the assessee;

(b) appointment of a receiver for the management of the movable or immovable property of the assessee; and

(c) arrest of the assessee and his detention in person for a period not exceeding six months.

(4) For the purposes of recovery of tax under sub-section (3), the Tax Recovery Officer shall have the same powers which, under the Code of Civil Procedure, 1908 (V of 1908), a Civil Court has for the purposes of the recovery of an amount due under a decree.

(5) The Central Board of Revenue may make rules regulating the procedure for the recovery of tax under this section and any other matter connected with, or incidental to, the operation of this section.

93A. Recovery of tax from persons assessed in Azad Jammu and Kashmir.- Where any person who has, at any time before or after the commencement of the Finance Ordinance, 1980, been assessed to tax for any income year under the law relating to income tax for the time being in force in Azad Jammu and Kashmir has failed or fails to pay such tax and the income tax authorities of Azad Jammu and Kashmir cannot recover such tax on account of the residence of the said person in Pakistan, or on account of there being no movable or immovable property in Azad Jammu and Kashmir belonging to the said person, the Deputy Commissioner in Azad Jammu and Kashmir may forward to the Tax Recovery Officer in Pakistan a certificate in the prescribed form specifying the place of residence of the said person in Pakistan, the description and location of the movable and immovable property in Pakistan belonging to him and the amount of the said tax due from him; and, where the said certificate is so forwarded, the Tax Recovery Officer shall proceed to recover the said tax in the manner specified in section 93, and all the provisions of the said section and section 95 shall apply accordingly.

94. Recovery of tax by Collector.- The Deputy Commissioner may forward to the Collector of the District in which the assessee resides or carries on business, or in which any property belonging to the assessee is situate, a certificate specifying the amount of any tax payable by the assessee; and, on receipt of such certificate, the Collector shall proceed to recover from the assessee the amount so specified as if it were an arrear of land revenue:

Provided that, without prejudice to any other powers of the Collector in this behalf, he shall, for the purposes of recovering the amount so specified, have the powers which, under the Code of Civil Procedure, 1908 (V of 1908), a Civil Court has for the purpose of the recovery of an amount due under a decree.

95. Initiation, validity, etc., of recovery proceedings.- Notwithstanding anything contained in any other law for the time being in force,-

(a) any proceedings for the recovery of tax under this Chapter may be initiated at any time;

(b) the Deputy Commissioner may, at any time, amend. any certificate issued under section 93 or section 94, or recall such certificate and issue of fresh certificate, as he thinks fit;

(c) it shall not be open to an assessee to question, before the Tax Recovery Officer or the Collector, as the case may be, the validity or correctness of any certificate issued under section 93 or section 94, or any such certificate as amended, or any fresh certificate issued, under clause (b); and

(d) the several modes of recovery specified in this Chapter shall be deemed to be neither mutually exclusive nor affect in any way any other law for the time being in force relating to the recovery of debts due to Government, and the Deputy Commissioner may have recourse to any such mode of recovery notwithstanding that the tax due is being recovered from an assessee by any other mode.