Penalty if you missed the last date 31st October,2019 of Filing Audit Report

PENALTY FOR LATE FILING OF AUDIT REPORT

The CBDT has extended the Audit Report Filing Last date from 30th September to 31st October on 27th of September for the A.Y. 2019-20 (Financial Year 2018-19).

However, If you missed that deadline to get accounts audited as well, then the assessee will be liable to pay the penalty under different sections.

PENALTY FOR LATE FILING OF AUDIT REPORT


UNDER SECTION - 271B OF I.T. ACT - The person who failed to get his accounts audited, becomes the defaulter under section 44AB and will require to pay the penalty at the rate of 0.5 % of the turnover or Rs.1,50,000 whichever is Lower.

However, if there is justification for late filing of Audit Report, then such penalty doesn't levy on the assessee. Such reasons can be -

1.  Natural Calamity.
2. Long Term Labour Strike.
3. Theft/ Fire that results in loss of Accounts.
4. Delay owing to Resignation of the Tax auditor.
5. Death/ Physical disability of the person in charge of the accounts.

The above reasons are considered valid justification in various Court/ Tribunal Cases.

To avoid such a higher penalty, get your accounts Audited within the due date.