I have one query on urgent basis, my new client not get his accounts audited in asstt yr 2016-17 having turnover of Rs. 5 cr. and not file his ITR and in 2017-18 his turnover is Rs. 7 cr. For asstt yr 2017-18, we can do it till 7th Nov but for 2016-17, I need your valuable and expert opinion, what should be done in this case.
03 November 2017
Yes you can conduct tax audit for AY 2016-17 and can file belated return last date of filing belated return for AY 2016-17 is 31st March 2018.
03 November 2017
Please get the accounts audited and file the return for the said year. The penalty for failure to get the accounts audited or to furnish the audit report u/s 44AB is lower of 0.5% of total sales/turnover/gross receipts or INR 1,50,000/- and Section 44AB requires that the person gets the books audited before the due date of filing the return and furnish it by the said date. So you may be liable to penalty even if it is late. But the penalty provisions u/s 271B use the terminology the Assessing Officer "MAY DIRECT" and this signifies that there is discretion with the AO. IF you do file the report the assessee will be in a better position to levy the discretion rather than if he didnt.
The context for this is that check the assessee history. was he under scrutiny assessment in the past. Will his transactions for FY 2015-16 get flagged under AIR/CIB. All of this will help you understand whether a notice will be received for non-filing. if you do file, which i am of the opinion you must, the system will note that no tax audit is filed and this will automatically create a red flag.
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