- The amount of first half-yearly tax as specified in the bill which has been served as aforesaid shall be paid within three months from the date of service of the bill and the second half-yearly tax as specified in the bill shall be paid before the 31st December of each year; and if a person liable to pay tax does not pay the same as required as aforesaid, then he shall be liable to pay by way of penalty in addition to the amount of such tax or part thereof which has remained unpaid, a sum equal to two per cent, of such tax for each 'month or part thereof after the last date by which he should have paid such tax and shall continue to be liable to pay such penalty until the full amount as per the bill is paid:

Provided that, any property tax for which a bill is served under this Act before the date of commencement of the Mumbai Municipal Corporation (Third Amendment) Act, 2006 has remained unpaid in full or in part and no penalty thereon is levied under section 207A, a person who has not paid such tax shall be liable to pay penalty as provided under this section, on and from the date when the penalty could be levied but is not so levied.]