Penalty for Non Compliance of Section 44AB
If any person falls under the section & fails to get audited of his account before the due date, then they will be liable for a penalty of 1/2% of the turnover or the gross receipts up to a maximum penalty of Rs. 1, 50,000.
However, Section 273B states that there is no penalty shall be levied under section 271B if there is a reasonable cause of such failure, which causes are accept by Tribunals/Courts as reasonable Cause are:
1. Resignation of the Tax Auditor and Consequent Delay
2. Death or physical inability of the partner in charge of the Accounts
3. Labor Problems such as strikes, lock-outs for a long period
4. Loss of Accounts because of Fire/Theft etc. beyond the control of the Assesses
5. Natural Calamities