Filing of accounts of a tax audit firm...

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Rajesh (Querist)
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25 September 2010 Dear Experts,
1)If a Tax audit client does not file his return before 30th september 2010 for the asst. year 2010-11 accounts, Is it mandatory for the A.O. to levy penalty of Rs. 1,00,000 for non filing of accounts within the due dt.
In other words A.O. has no discretionary power in deciding whether the penalty can be levied or not?
2) A.O. has the right to decide the quantum of penalty amount less than 1 lakh.?
3) Pls. tell me the section on which penalty can be levied?
With regards,
Rajesh.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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25 September 2010 The maximaum amount of penalty u/s 271F is Rs. 5000.00

AO may or may not charge the penalty.

Last date for filling of return is end of assessment year, after that penalty may be imposed.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 September 2010 Belated furnishing of tax audit report as per section 44AB attracts penalty under section 271B of the Income tax Act,1961. W.e.f 1/4/2011 the penalty amount is one hundred lakhs or 1/2 % of the sales,turnover or gross receipts which ever is less.However, if there is a reasonable cause of the delay an if it can be proved penalty can be waived under section 273B of the said act.

CA. Chikkerur C R

CA. Chikkerur C R (Expert)
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29 October 2010 Section 271F deals with non filing of T%ax return - Rs 5000. Its discretionary one.

Section 271B - for not audit of Accounts - 0.5% of tuirnover or RS 100000 whicjh ever less

IN your case, Both will apply as assesssee is tax audit client. But 271F may or may not impose by AO

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