Failure to file a Tax Audit Report (TAR) when required can result in a penalty. This penalty is typically 0.5% of total sales, gross receipts, or turnover, capped at Rs 1,50,000. While compulsory, it may be waived if a reasonable cause is demonstrated to the department. It's crucial to be aware of these penal provisions and ensure timely filing of both TAR and Income Tax Returns (ITRs) to avoid charges.
If a taxpayer who is liable to get a tax audit done but defaults in doing so, a penalty is charged on the taxpayer. The penalty that is levied on him or her is of the following: 0.5% of the total sales or gross receipts or turnover. Rs 1,50,000