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Tax Audit late submission penalty


Dilip Talasu

2013-10-07

Dear sir,

Can i know what is the fine for a assessee if he did not submited/uploaded Form 3CB,3CD in time.

Thanking You.

CA Pulkit Sharma

2013-10-07

The fine is .5% of turnover or 150000., whichever is less.

But if assessee has a valid reason for not filing the tax audit report than fine or penalty will not be charged.

Ill health can be a reason, but requires a certificate by competant doctor.

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CA Pulkit Sharma

2013-10-07

Refer section 273B for the reason which can be given for exemption from penalty under section 271B.

Some of the reasons are:

Resignation of Tax Auditor

death or physical inability of assessee

Labour strike

Natural clamities etc.

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Mukesh Jain CA

2013-10-07

Yes. I agree with pulkit that this penalty is as per sec 271 B, however it is subject to sec 273 B of the IT Act.

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Ganesh babu k

2013-10-20

In My opinion No penalty can be imposed on late filing/acceptance of tax audit report.

.

.

CBDT Not updated any provsion in act which confirms about consequences to assesse in case of delay filing/acceptance

However for your information under section 271B

.

"Assessing officer MAY direct assesse a SUM EQUAL TO ONE-HALF PERCENT OF SALES /GROSS RECEIPTS,OR 1,50,000 WHICH EVER IS LESS

..

.

and 271B can be enforsed when 

1)failure to get accounts audited by CA

2)failed to furnish a report of audit as required under 44AB

.

And if you see Sec.44AB also there is no provision which says that assesse is liable if CA failed to furnish audit report electronically..i think it needs to be enabled to impose penalty on assess

.

So just get a form 3CD from CA before return filing date/due date ,,i dont think department also asks penalty

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