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Tax Penalties & Late Fees After Missing Audit Report Filing

For corporations and individuals under Indian tax laws who were subject to tax audits, the deadline to file income tax returns is 31st October 2023, for the financial year 2022-23. Late fees will apply if taxpayers have not filed it by the due date.

Note: In Explanation 2, sub-section (1), clause (a) describes how to file Form ITR-7 for the Assessment Year 2023-24. Section 139 of the Act has been extended until 30th November 2023, which is the expiration date of 31st October 2023. Read PDF

For late tax filing, a late fee of Rs 5000 would be applied. The audit report would be needed to get filed in the stipulated time, if not done, the penalty would be levied via assessing officer under section 271B:

  • 0.5 per cent of the turnover, gross receipts, or total sales
  • Rs 1,50,000

Whichever would be lower.

Moreover, for the late tax return filing, there shall be no losses permitted to be taken forward as well as the interest u/s 234A will be applied.

Although the A.O. has the discretion to issue a notice regarding the tax penalty, taxpayers are not discouraged from tax audit reports filing it even after the due date, and the same can be filed if it is compliant with the regular provisions. An assessee can even drop off the notice if they provide a bonafide explanation for the delay.

September 30, 2022, is the last date to file an Income tax return for the business assessment year 2022-23. Moreover, extensions were provided to file these tax returns. The initial extension was Oct 7 and the next was Oct 31 and after that, it was again gets extended to Nov 7.

What is The Term Tax Audit Implied?

Tax audits arrived in 1984 in the Indian tax laws. The major purpose of this complaint of distinct provisions of the act and would be performed via the CA.

The taxpayers who come under the income tax audits need to get their accounts, i.e. balance sheet and profit and loss account, audited by a chartered accountant.

Moreover, a proper audit for the purpose of tax furnishes, the books of account along with additional records would have been maintained by the assessee, which shows that the assessee’s income, as well as the same claims for the tax deduction, would have been performed in a precise way.

What Forms Would be Needed to Perform?

The chartered accountant running the tax audit provides his/ her findings, observations, and others., in the form of an audit report in Form Nos. 3CA/3CB and 3CD.

The form specified for the audit report under section 44AB of the act is Form No. 3CB, and the defined particulars need to be reported in Form No. 3CD.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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1 thought on "Tax Penalties & Late Fees After Missing Audit Report Filing"

  1. Dear Sir, Tax audit we have filed form 3CB and 3CD with in due date 30th september, but tax amount not able to pay 31st october if we have to payment tax on november2023, how much we have to pay penalty and others kindly explain

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