Penalty of Late Filing for Statutory Audit
Yes, there are penalty of late filing for statutory audit. The penalty is levied under Section 271B of the Income Tax Act, 1961. The penalty is 0.5% of the total sales, turnover, or gross receipts, whichever is less, or up to a maximum of Rs. 1,50,000.
The due date for filing the statutory audit report is September 30 of the assessment year following the financial year for which the audit is being conducted. For example, the due date for filing the statutory audit report for the financial year 2023-24 is September 30, 2024.
There are a few exceptions to the penalty for late filing of statutory audits. The penalty will not be levied if the delay is due to:
- The death or physicals inability of the partner responsible for accounts.
- The resignation of the tax auditor.
- A natural calamity.
- A strike or lockout.
- A reasonable cause for the delay.
If the assesse is able to establish that there was a reasonable cause for the delay, the penalty will not be levied.
However, the assesse will still have to pay the late fee for filing the audit report after the due date. The late fee is Rs. 500 per day for the first 30 days of delay and Rs. 100 per day for the subsequent days.
It is important to note that the penalty for late filing of statutory audit is in addition to any other penalties that may be imposed for non-compliance with the Income Tax Act.
For example, if the assesse fails to file the tax return by the due date, they may also be liable to pay a penalty of up to Rs. 5,000.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com
