Penalties in Income tax wrt tax audit, accounts, filing of return
Few penalties leviable under the income tax act are as under:-
Tax audit is compulsory for few assessee covered u/s 44AB of the income tax act 1961. For non complaince of sec 44AB ie., if an assessee has not got his books of accounts audited," the assessing officer may levy a penalty of 0.5% of turnover subject to a maximum penalty of Rs.1,50,000/-". (Section 271B)
If an assessee fails to maintain the books of accounts then the penalty leviable is Rs.25,000/- u/s 271A of the IT Act 1961.
If an assessee fails to file his return of income before due date specified u/s 139(1) of the IT act the AO may levy a penalty of Rs.5,000/- u/s 271F.
Tax audit should be conducted by a Chartered Accountant. It is a big matter of complaince under the income tax act & non complaince can lead to selection of the assessee for scrutiny, also lesser weightage will be given for the accounts which are not audited since the officer will not have any thing that he can rely due to lack of a audit report.
I guess 271F is applicable only when the assesee fails to file ITR before the assessment year rather thn the due date u/s 139(1). Correct me if am wrong