Late fees on late filling of tax audit report

If any person who is required to comply with section 44AB fails to get his accounts audited in respect of any year or years as required under section 44AB or furnish such report as required under section 44AB, the Assessing Officer may impose a penalty.

Late filing for audit report fees will be 0.5% of the total sales, turnover, or gross receipts, as the case may be, in business, or of the Gross receipts in the profession, in such years or years or, maximum INR 1,50,000.

<a target='_blank' rel='nofollow' href="https://ebizfiling.com/blog/all-about-tax-audit-under-section-44ab-of-income-tax-act/"> All about tax audit under section 44AB of income tax act </a>

In case of a delay in completing audit and submitting the report on time (before or on September 30), then 0.5% of the turnover, a maximum of Rs. 1.5 lakh, has to be paid as penalty. If there is a genuine reason for delay or non-filing of audit report, then as per Section 273B, no penalty will be applicable.

To break this down for FY 2020-21; if you file your ITR before 31st December 2021 (15th February 2022 for audit and 28th February 2022 for transfer pricing cases), no penalty will be levied. For returns filed after 31st December 2021, the penalty limit will be increased to Rs. 5,000.

Is late audit report penalty covered in vsv scheme 2024