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Which penalty will levied???

Krishna Chaudhary (Accountant) (4531 Points)

18 January 2021

I have not maintained any books of account.
and I have also not done audit under Income tax act.

I am liable for maintaining books of account and also for tax audit.

what is the safer side for me.

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16 Replies

rama krishnan (12234 Points)
Replied 18 January 2021

Penalty under section 271A may attract

ayusmita (Tax consultant) (5885 Points)
Replied 18 January 2021

For non maintenance of books penalty under section 217A as per 44AA a maximum of 25000
for not audited then penalty as per 44AB under section 217B maximum of rs 150000
but if you give valid reason for why you unable to do so then no penalty will be there

BE YOURSELF BELIVE YOURSELF (31 Points)
Replied 18 January 2021

271a penalty max.upto 25000 for books

271b , .50% of turnover or 150000 lower

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 18 January 2021

It is advisable to prepare you book and get it audited soon. Why to wait for penalty

Kapadia Pravin (17249 Points)
Replied 18 January 2021

Safer side is to maintain book of account and also get it audited if audit provisions apply.

VAMSHI KUMAR (7 Points)
Replied 18 January 2021

@ ayusmita Excuse me ma'am there is only one penalty because if there non maintenance of books of accounts where comes the audit of them. so only 25000/- will be your penalty. read related case law. thanks

1 Like

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 18 January 2021

Whole penalty u/s 271 will attract

Kapadia Pravin (17249 Points)
Replied 18 January 2021

Please take care in citing proper and correct Section of the Act.

Krishna Chaudhary (Accountant) (4531 Points)
Replied 19 January 2021

As per the supreme court judgement if you do not maintain books of account the penalty can be levied only for not maintenance of books account and not for tax audit.
this is one of the awesome loophole, for if you do not get audited, take penalty of not maintenance of books of account instead of tax audit penalty

3 Like

NARENDRA (ACCOUNTS MANAGER) (1488 Points)
Replied 19 January 2021

first off all pls. be clear- how much ur turnover & ur income ?

ayusmita (Tax consultant) (5885 Points)
Replied 19 January 2021

Can you share the case study of one penalty where's incase someone failed to maintain books of accounts and audit at same time

Kapadia Pravin (17249 Points)
Replied 20 January 2021

I think both will exist Under 271A and 271B .
Non-maintenance of accounts and for failure to provide books of accounts for audit.

The Department may order for books of account and further for audit.