Tax audit late filing penalty

This discussion clarifies penalties for late filing of tax audit reports. While a mandatory late fee of Rs 10,000 applies under section 234F for delayed return filing, the penalty under section 44AB for failing to get a tax audit done is typically 0.5% of total sales, turnover, or gross receipts, or Rs 1,50,000, whichever is lower. Although the Assessing Officer (AO) has the discretion to waive this penalty, it is not always exercised.