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What is the penality and due date of tax audit report for Hospitals?

Penality and Dadline of Tax Audit Report

 

The Penality and Dadline of Tax Audit Report for hospitals in India can explain as follows:

◘ Due Date:

The due date for filing the tax audit report for hospitals in India is typically September 30th of the assessment year.

This means that if the financial year ends on March 31st.

The tax audit report for the hospital should file by September 30th of the subsequent year.

However, it’s essential to stay updated with any changes in due dates that might occur.

◘ Penalty:

If a hospital is required to undergo a tax audit under the provisions of the Income Tax Act and fails to file the tax audit report by the due date, a penalty can be levied.

As per Section 271B of the Income Tax Act, the penalty for non-compliance with the tax audit requirements is 0.5% of the total turnover or gross receipts, subject to a maximum penalty of ₹1,50,000.

This penalty is in addition to any other consequences that may arise due to non-compliance.

◘ Compliance and Importance:

Filing the tax audit report within the due date is crucial for hospitals to ensure compliance with tax regulations.

The tax audit helps in providing transparency in financial reporting and aids the Income Tax Department in verifying the accuracy of the financial statements and the income reported by the hospital.

Timely and accurate submission of the tax audit report also helps in avoiding penalties and legal issues.

To visit: https://www.mca.gov.in/

 

 

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