Time limit for initiation of penalty under section 271B

The time limit for initiation of penalty under Section 271B of the Income-tax Act, 1961 is: - 3 years from the end of the financial year in which the audit report was due to be furnished (if the assessee has furnished the audit report within the due date); - 6 years from the end of the financial year in which the audit report was due to be furnished (if the assessee has not furnished the audit report within the due date). Section 271B states that if an assessee fails to get their accounts audited or furnish the audit report as required under Section 44AB, the Assessing Officer may impose a penalty. However, the penalty proceedings must be initiated within the time limits specified above. Please note that these time limits are subject to change,