Failure to pay the tax deducted or collected at source or to pay the dividend distribution tax
234. (1) A person shall be punishable with rigorous imprisonment for a term which may extend to two years and with fine, if he fails to pay to the credit of the Central Government-
(a) the tax deducted, or collected, at source by him as required by, or under, the provisions of sub-chapter-A or sub-chapter-B of Chapter XI; or
(b) the dividend distribution tax under section 207.
(2) The fine referred to in sub-section (1) shall not be less than three per cent of the tax referred to therein, for each month of default, or part thereof, for the period commencing from the date on which the amount was required to be paid to the credit of the Central Government and ending with the date of payment or the date of conviction, whichever is earlier.
