difference between fine penalty

This query is : Resolved 
 

(Querist)
05 August 2010

sir plz tell me difference between fine penalty & interest.

regards
rajiv


CA Ravi Sisodia (Expert)
05 August 2010

A fine is imposed by a court when you are convicted of a criminal offence.

A penalty is issued by an appropriate authority when you have not complied with the law but you have not committed a criminal offence. This means you do not get a criminal record e.g. parking and fare evasion. If you fail to pay the penalty, you will have to go to court and may then have to pay a fine and get a criminal record.

CA Ravi Sisodia (Expert)
05 August 2010

Interest
Interest is calculated based on how much tax you owe. Interest rates change every three months. Currently, the IRS interest rate for underpayment of tax is % per year. The interest is calculated for each day your balance due is not paid in full.

VINOD ARORA (Expert)
05 August 2010

Fines are amounts of money that the court can order a person to pay for an offence following a successful prosecution.

Penalties do not require court proceedings and are imposed for failing to comply with a provision of some Act of law.



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