Tax Audit Report Penalty & Dedline
Tax Audit Report Penalty & Dedline, if a freelancer in India has a turnover of more than Rs. 1 crore in a financial year, they are required to get their accounts audited by a chartered accountant.
The due date for filing the tax audit report for freelancers is 30th September of the following financial year.
For example, the tax audit report due date for the financial year 2023-2024 is 30th September 2024.
The penalty for late filing of the tax audit report for freelancers is 0.5% of the total sales, turnover or gross receipts. The maximum penalty is Rs. 1.5 lakh.
Some exceptions exist to the requirement for freelancers to undergo auditing for their accounts. For instance, freelancers who doesn’t register for GST do not need to undergo auditing for their accounts.
If you’re a freelancer and uncertain about whether you need to have your accounts audited, you should consult with an accountant or lawyer.
Here are some additional things to keep in mind about the tax audit report due date for freelancers:
◘ The auditor can extend the due date by up to 30 days if they submit a written request to the freelancer.
◘ The freelancer must file a copy of the tax audit report with the Income Tax Department within 30 days of the due date.
◘ Failure to comply with the tax audit requirements can result in penalties from the Income Tax Department.
To visit: https://www.mca.gov.in/
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