Penalty Tax-audit
The due date and Penalty TaxAudit Reports in India for Organizations, Charitable and Social Service entities are as follows:
1. Due Date:
For organizations, charitable trusts, and social service entities, the due date for filing the tax audit report is generally September 30th of the assessment year.
This due date may vary based on any extensions provided by the tax authorities.
2. Penalty for Non-compliance:
If the tax audit report is not filed by the due date, the taxpayer can face penalties under Section 271B of the Income Tax Act.
The penalty is equal to 0.5% of the total turnover or gross receipts, subject to a maximum penalty of ₹1,50,000. It’s important to ensure timely compliance to avoid such penalties.
3. Important Consideration:
Entities engaged in charitable and social service activities may need to adhere to specific provisions and regulations under the Income Tax Act, such as maintaining proper books of accounts.
Complying with Section 12A registration for exemption, and utilizing funds for genuine charitable activities.
Non-compliance with these requirements could lead to adverse consequences during the tax audit process.
FAQs:
- What is a statutory certificate?
A statutory certificate is issued to comply with laws and regulations set by a governing authority. - What is a mandatory certificate?
A mandatory certificate is required by specific rules, guidelines, or standards, even if not explicitly stated in laws. - How do statutory and mandatory certificates differ?
A statutory certificate is legally require by law, while a mandatory certificate is require to meet regulatory or industry standards. - Who issues statutory certificates?
Government bodies or authorized regulatory agencies issue statutory certificates. - Who issues mandatory certificates?
Mandatory certificates are issued by authorities or organizations relevant to the industry or regulatory body. - Are all statutory certificates mandatory?
Yes, all statutory certificates are mandatory because they are require by law. - Are all mandatory certificates statutory?
No, not all mandatory certificates are statutory, as some are required by industry standards, not directly by law. - Can a certificate be both statutory and mandatory?
Yes, a certificate can be both statutory and mandatory if it fulfills legal obligations and industry standards. - What happens if I don’t obtain a statutory certificate?
Failure to obtain a statutory certificate can result in legal penalties or fines. - What happens if I don’t obtain a mandatory certificate?
Not obtaining a mandatory certificate can result in non-compliance with industry standards, possibly leading to operational restrictions or fines.
To visit: https://www.mca.gov.in/
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