Income tax audit deadline is over for these taxpayers; will have to pay penalty
income tax audit report under section 44AB of the Income Tax Act, 1961, has not been extended by the income tax department. If a taxpayer has not submitted the audit report on or before September 30, 2023, they can still do it, albeit by paying a penalty.
The Income Tax Act levies a penalty of 0.5% of the total sales/turnover/gross receipts (whichever is applicable) or Rs 1.5 lakh whichever is lower, for late submission of tax audit report.
It is important to note that if the income tax return is filed without the submission of an audit report, then it will be considered as a defective ITR.
The income tax department will send you a tax notice to correct the ITR filed. A taxpayer will be required to file the audit report as well as pay the penalty amount.
Once the penalty is paid and an audit report is submitted, then the taxpayer will be required to file the correct ITR again.
If the taxpayer does not correct the defective ITR within the specified time limit, then it will be considered that the ITR has not been filed. The consequences of not filing ITR as well as non-submission of the audit report will be applicable.
For instance, if a taxpayer has failed to file ITR within the due date and also has an outstanding tax liability, then he/she is liable for paying penal interest.
If an individual with business or professional income missed the original ITR deadline, he/she could file a belated ITR by paying Rs 5,000 penalty. Hence, if an individual missed the income tax audit deadline as well as the original ITR deadline, then he/she must file a belated ITR and submit the audit report too.
