Penlalty under Sec 44ab

This query is : Resolved

K V RAMA MOHAN RAO (Querist)
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19 December 2008 For some reason a businessman fails to furnish report as is required by U/S 44AB. What is the Min and Max Penalty charge by Assessing Officer?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 December 2008 As per section 271B penalty @ 0.5% of the total sales turnover or gross receipts subject to a maximum of Rs. one lakh can be levied.

SANJAY VERMA

SANJAY VERMA (Expert)
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19 December 2008 Penalty at the discretion of assessing officer

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 December 2008 Continuing Varma, provided the assessee proves that there was reasonable cause for the failure. Pl refer section 273B of The income Tax Act,1961.

CA Parvin Ahuja

CA Parvin Ahuja (Expert)
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20 December 2008 Penalty under section 271B is imposed if any person fails to get the accounts audited or fails to furnish the audit report if accounts are required to be audited under section 44AB. Penalty is 0.5% of turnover or receipts or Rs.1.00 Lac whichever isless. But if the assessee proves to the satisfaction of the assessing officer that the assessee was prevented by sufficient cause then the penalty can be dropped as per provisions of section 273B. But under the present circumstances the return to be filed is annexureless the penal provisions are of acedemic interest only.

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