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Representative assesse liablity for penalty

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kumar agnivesh

29 Points Posted on 23 May 2021

My father in law died before the last date of getting his account audited in 2020. My wife now want to file his return as representative assesse. Will she be liable to pay penalty of 1.5 lac for not getting accounts audited. As my father in law business turnover was 2.9 crore. But profit was only 7 lacs. As the actual work was job work. But due to gst was shown as purchase and sales.

Are there any remedy. Please help.

Replies (4)

Quick Summary

A user's father-in-law passed away before his 2020 tax audit deadline. His wife, acting as the representative assessee, is concerned about a potential £1.5 lakh penalty due to the business turnover exceeding £2.9 crore, despite low profit from job work. Advice suggests that penalties for late audit reports may be waived if the person in charge of accounts has died. Submitting the death certificate during audit report upload is recommended, and some suggest the penalty is discretionary and can be addressed with justification later.

Sivaramaraju G

Learner

1307 Points Posted on 23 May 2021

Normally penalty will be applicable for late filing of audit report.

if your father in law is sole property then he will be the person in charge of accounts.

if person in charge of accounts died penalty can be waived off as per law.

I think while uploading audit report, upload the death certificate of the assessee.(it's my opinion, I did not face this kind of situation).

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 23 May 2021

Yes agree with above

veerendar singh

tax consultant

1829 Points Posted on 23 May 2021

You do not need to worry about the penalty at all.
it is imposed at the discretion of AO at a later stage. at that time you can give your honest justification