Tax audit

If any person fails to get his accounts audited in respect of any previous year or years relevant to an assessment year or furnish a report of such audit as required under s. 44AB, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum equal to one-half per cent of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such previous year or years or a sum of one hundred and fifty thousand rupees, whichever is less.

Not filing tax audit report and not submitting return will be hit by 2 separate penalty provision. 271B for failure furnish audit repor and 271F for failure to file return of income.

However please note that 271F states that return has to be filed u/s 139 within the end of the assessment year. Failure to file return leads to penalty of Rs 5,000/-. So in the instant case if return is not submitted even by the end of the assessment year additional penalty of Rs 5,000/- will also be levied