Penalty for failure to get accounts Audited Sections 271B

Penalty for failure to get accounts Audited Sections 271B

According to Income Tax Act 1961  compulsory audit of account under section 44AB

Every person carrying on business shall if his total sales turnover or gross receipts as the case may be in business exceed Rs.1 Crore in any previous year get his accounts of such previous year audited by an Chartered Accountant on or before the specified date.

If any assessee who need to get compulsory audit and he failure to get accounts audited or to furnish a report of such audit as required under section 44AB

Penalty

1. Half percent( 0.5%) of total sales turnover or gross receipts as the case may or

2. Rs. 1,50,000

Whichever is less

Assessing officer can impose penalty

No penalty if assessee prove there is reasonable  ground for failure

Death or physical inability of the partner in charge of the account

Resignation of tax auditor and consequent delay;

Labour problems such as strike, lock-out for a long period, etc;

Loss of accounts because of fire, theft, etc., beyond the control of the assessee;

Bona fide interpretation of the ‘turnover‘ based on expert advice;

 

conclusion

Compulsory audit under section 44AB need to get accounts audited by a Chartered Accountants if any assessee fail to get accounts audited that attract   maximum penalty Rs.1,50,000

 

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