Tax Audit Report
Yes, there is a penalty for not filing a tax audit report for interior designers in India. The penalty is Rs. 1.5 lakh.
The penalty for not filing a tax audit reports levied under Section 271B of the Income Tax Act.
This section states that any person who required to get his accounts audited under Section 44AB of the Income Tax Act and does not get his accounts audited, shall be liable to a penalty of Rs. 1.5 lakh.
Section 44AB of the Income Tax Act states that any person whose gross receipts or turnover exceeds Rs. 1 crore in a financial year is requir to get his accounts audit by a chartered accountant.
Therefore, interior designers whose gross receipts or turnover exceeds Rs. 1 crore in a financial year required to get their accounts audit and file a tax audit report with the Income Tax Department.
If an interior designer does not file a tax audit reports.
They will be liable to pay the penalty of Rs. 1.5 lakh. The penalty is payable irrespective of whether the interior designer has actually evaded tax or not.
The penalty for not filing a tax audit report is a serious matter and can have a significant financial impact on interior designers. It is important for interior designers to be aware of the filing requirements and to take steps to ensure that they comply with the law.
To visit: https://www.incometax.gov.in
For further details access our website: https://vibrantfinserv.com