Tax Audit Penalty
Tax Audit Penalty Indeed, here’s a unique response to your question about penalties for late filing of a tax audit:
Absolutely, there are indeed penalties associated with the tardy submission of a tax audit report. The penalty amount is determined by selecting the lesser of the two following calculations:
0.5% of the total sales, turnover, or gross receipts of the business.
Rs. 1,50,000.
It’s essential to recognize that this penalty is enforced by the Income Tax Department. Nevertheless, there exists a potential avenue for having this penalty waived, contingent on the taxpayer’s ability to provide a valid and reasonable cause for the delay. The Income Tax Department acknowledges several legitimate grounds that can warrant an extension, including:
Instances of natural disasters.
Delays resulting from the tax auditor’s resignation, thereby causing a postponement.
Prolonged labor disputes like strikes or extended lock-outs.
The misplacement of accounts due to circumstances beyond the assesses control.
Physical incapacity or unfortunate passing of the partner responsible for managing the accounts.
Should you find yourself in a scenario where a tax audit is compulsory, and the due date is looming or has elapsed, I strongly recommend initiating contact with your tax auditor at your earliest convenience. Their expertise and intervention might facilitate the completion of the audit within the stipulated timeframe, thereby helping you evade the imposition of penalties.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com