Tax audit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 July 2013
we have done the tax audit of the entity having turnover above 60 lacs within prescribed time.but while filling the income tax return of the assesse we selected no to the question that whether u are covered under tax audit.however the audit fees has been shown in the p&l account.
04 July 2013
No issues. You can show that it was an error when any query is raised. You can also revise your return.
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 July 2013
WHETHER REVISING THE RETURN WILL BE TREATED AS LATE FILING OF TAX AUDIT REPORT ?? WILL ANY PENALTY IMPOSED??
26 July 2025
Great question! Here’s a clear breakdown for you:
---
### Issue:
You did the tax audit properly for turnover above Rs. 60 lakhs, but mistakenly answered **“No”** to the question on whether the return is covered under tax audit while filing the ITR. You want to know:
* If revising the return will be treated as late filing of the tax audit report?
* Will any penalty be imposed?
---
### Explanation:
1. **Filing a Revised Return for Tax Audit Question:**
* If you realize the mistake, you **should file a revised return** to correctly declare that the taxpayer is covered under tax audit.
* The revised return is generally accepted if filed within the allowed time period (usually before the end of the relevant assessment year or before completion of assessment, whichever is earlier).
2. **Is Revised Return Considered Late Filing of Tax Audit Report?**
* The tax audit report filing is **a separate compliance under Section 44AB**, which requires filing the audit report before the due date (usually 30th September following the financial year).
* Simply answering "No" in the ITR doesn’t affect the tax audit report filing itself, if the tax audit report was actually filed on time with the department.
* Revising the return to correct this answer **does not mean you are late in filing the tax audit report**.
3. **Penalty Implications:**
* Penalty under Section 271B is imposed if tax audit report is not filed or filed late beyond due date.
* Since the audit report was filed on time, penalty **should not be imposed** merely for an incorrect answer in the original return.
* Revising the return to fix the mistake should not attract penalty.
---
### Summary:
| Situation | Result |
| ----------------------------------------- | -------------------------------------------------- |
| Tax audit report filed on time | No penalty for late filing |
| Wrong answer on tax audit question in ITR | Can file revised return to correct without penalty |
| Filing revised return to correct answer | Not considered late filing of tax audit report |
---
**Recommendation:** File the revised return at the earliest to avoid any confusion or queries from the department. Keep a copy of the original and revised returns and the tax audit report for your records.
---
If you want, I can help you draft a short explanation or email to your CA or the tax department about this correction. Want me to?
---
### Issue:
You did the tax audit properly for turnover above Rs. 60 lakhs, but mistakenly answered **“No”** to the question on whether the return is covered under tax audit while filing the ITR. You want to know:
* If revising the return will be treated as late filing of the tax audit report?
* Will any penalty be imposed?
---
### Explanation:
1. **Filing a Revised Return for Tax Audit Question:**
* If you realize the mistake, you **should file a revised return** to correctly declare that the taxpayer is covered under tax audit.
* The revised return is generally accepted if filed within the allowed time period (usually before the end of the relevant assessment year or before completion of assessment, whichever is earlier).
2. **Is Revised Return Considered Late Filing of Tax Audit Report?**
* The tax audit report filing is **a separate compliance under Section 44AB**, which requires filing the audit report before the due date (usually 30th September following the financial year).
* Simply answering "No" in the ITR doesn’t affect the tax audit report filing itself, if the tax audit report was actually filed on time with the department.
* Revising the return to correct this answer **does not mean you are late in filing the tax audit report**.
3. **Penalty Implications:**
* Penalty under Section 271B is imposed if tax audit report is not filed or filed late beyond due date.
* Since the audit report was filed on time, penalty **should not be imposed** merely for an incorrect answer in the original return.
* Revising the return to fix the mistake should not attract penalty.
---
### Summary:
| Situation | Result |
| ----------------------------------------- | -------------------------------------------------- |
| Tax audit report filed on time | No penalty for late filing |
| Wrong answer on tax audit question in ITR | Can file revised return to correct without penalty |
| Filing revised return to correct answer | Not considered late filing of tax audit report |
---
**Recommendation:** File the revised return at the earliest to avoid any confusion or queries from the department. Keep a copy of the original and revised returns and the tax audit report for your records.
---
If you want, I can help you draft a short explanation or email to your CA or the tax department about this correction. Want me to?
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