ITR Penalties for Restaurants or Hotels
Yes, there are ITR penalties for restaurants or hotels if they fail to file their Income Tax Returns (ITR) on time.
The penalties vary depending on the amount of tax due and the length of the delay.
For individuals, the penalty for late filing of ITR is 5% of the tax due or a minimum of Rs. 500, whichever is higher.
For companies, the penalty is 10% of the tax due or a minimum of Rs. 1000, whichever is higher.
The penalty is also increased for each month of delay, up to a maximum of 30% of the tax due. In addition, the taxpayer may be charged interest on the outstanding tax amount.
If a restaurant or hotel fails to file their ITR, they may also be subject to other penalties, such as:
- A ban on making further investments
- A ban on obtaining new loans
- A ban on participating in government tenders
- A fine of up to Rs. 25,000
It is important for restaurants and hotels to file their ITRs on time to avoid these penalties. They can file their ITRs online or through a tax consultant.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com
