Grace period - Also for penalty

A doubt that lingers in our mind quite often is can the grace period in payment of tax is also applicable for payment of tax with penalty?

The Government in its letter number 86 Home dated 15.4.1976 has clarified that Section 11 of the General Clauses Act which comes to our aid in determining the last date does not differentiate between the last date for tax or last date for penalty. It is common and it applies to all the cases irrespective of the fact whether it is tax last date or penalty last date.

The Transport Commissioner also has clarified in circular No.41/91 that the grace period of two days is applicable to payment of tax with penalty also.