Consequences of failure to deduct or to pay tax

(1) If any assessee fails to deposit the tax within the prescribed period, the Assessing Authority shall serve on him a notice of demand in the prescribed form requiring him to pay tax along with interest under sub-section (2) and sub-section (3) of this section within 30 days from the receipt of the said notice. (2) If an employee including an officer working under the State or the Central Government or an undertaking owned or controlled by the State or the Central Government, charged with the responsibility of drawing and disbursing salaries to the employees, does not deduct the tax at the time of payment of salary or, after deducting, fails to pay as required by or under the Act, he shall, without prejudice to any other consequences and liabilities which he may incur, be liable to pay, in addition to the amount of tax, simple interest equivalent to the amount of 4% of the tax payable for each month of default. (3) If any person, other than the person specified in sub-section (2), fails to pay tax as required by or under the Act, he shall be liable to pay in addition to the amount of tax, simple interest at the rate and in the manner laid down in the said sub-section.