Section 271B: Failure to get accounts audited

By | June 16, 2015

Penalty for failure to get accounts audited under section 271B

Penalty u/s 271B is imposable in case the audit report u/s 44AB is not obtained within the due date of filing the ITR u/s 139. The due date for filing Income Tax Return for corporate and those assesses who are required to get their accounts audited is 30th September every year. The Due date for furnishing Audit report u/s 44AB to the Income Tax Department is also 30th September every year.

Earlier before the introduction of annexure less forms the audit report was required to be submitted with the department before the due date of return of Income, otherwise it attracted penal provisions u/s 271B. Penalty u/s 271B is a sum equal to half per cent of the total sales, turnover or gross receipts from business or profession as the case may be , in such financial year or one lakh rupees, whichever is less.

But after the introduction of annexure less forms i.e. ITR4, ITR5, ITR6 etc., the Tax Audit Report is not required to be submitted along with the Return of Income nor it is to be submitted separately any time before or after the due date. But one should get the Tax Audit Report from his CA before the due date of submitting the Return of Income and fill the relevant columns of the Return of Income on the basis of such report.

The Tax Audit Report is required to be submitted if it is called for by the Income Tax Officer during the Assessment proceedings.

SectionNature of defaultMinimum PenaltyMaximum Penalty
271BFailure to get the accounts audited  as required u/s44ABor furnish report of such audit before the specified date mentionedin explanation (ii) below section 44AB0.5% of the total sales, turnover,or gross receiptsRs.1, 50,000


Section 271B, 44AB of Income tax act, 1961-

Failure to get accounts audited under section 271B

If any person fails to get his accounts audited in respect of any previous year or years relevant to an assessment year or  [furnish a report of such audit as required u/s 44AB], the Assessing Officer may direct that such person shall pay, by way of penalty, a sum equal to one-half per cent of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such previous year or years or a sum of one hundred fifty thousand rupees, whichever is less.

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