26 September 2020
Private Limited company incorporated in F.Y 2018-19, not filed ITR for F.Y 2018-19 and also having turnover more than 2 crores, tax audit also pending !!
How to we proceed further, as tax audit pending, statutory audit also pending...can we file return without audit as last date is 30th September only?
If we can not file, than what will be our further course of action..
27 September 2020
You shall have to file the income tax return for AY 2019-2020 on or before 30.09.2020 to avoid penalty. Also file the Tax Audit Report as soon as possible.
02 August 2024
If a private limited company has not filed its Income Tax Return (ITR) for the Financial Year (FY) 2018-19 (Assessment Year 2019-20) and has a turnover exceeding ₹2 crores, the following steps and consequences need to be considered:
### Filing Without Tax Audit
1. **Filing Without Tax Audit:** - **Legal Requirement:** For a company with turnover exceeding ₹2 crores, a tax audit is mandatory under Section 44AB of the Income Tax Act. The tax audit report must be filed along with the ITR. - **Deadline:** The due date for filing the ITR for FY 2018-19 was September 30, 2019, and this includes filing the tax audit report.
2. **Consequences of Non-Compliance:** - **Penalties for Late Filing of ITR:** - **Penalty under Section 271F:** If you fail to file the ITR within the due date, a penalty of ₹5,000 can be imposed under Section 271F. This is applicable if the return is filed after the due date but before the end of the relevant assessment year. - **Additional Penalty:** For late filing, interest under Section 234A, 234B, and 234C will also apply. These are interest penalties for late filing, underestimation of advance tax, and non-payment of advance tax, respectively.
- **Consequences for Non-Filing of Tax Audit Report:** - **Penalty for Non-Filing of Tax Audit Report:** Under Section 271B, if a tax audit report is not filed within the due date, a penalty of up to ₹1,50,000 may be imposed. - **Assessment Risk:** Non-filing of the tax audit report can lead to the assessment being done based on the best judgment of the tax authorities, which might lead to higher tax demands.
3. **Further Actions:** - **File the Return and Tax Audit Report:** - **Late Filing:** Despite the deadlines, you should still file the tax audit report and the ITR as soon as possible. The Income Tax Department allows belated returns, but penalties and interest will apply. - **File in Correct Form:** Ensure that the ITR-6 is used for companies. The tax audit report should be submitted using Form 3CD, and the audit report must be filed electronically.
- **Rectification Request:** - **If Missed the Deadline:** If the deadline has passed, you can still file the return belatedly but will face penalties. File a belated return using ITR-6 and attach the tax audit report.
4. **Communicate with Tax Authorities:** - **Penalties and Complications:** If you anticipate issues or have not filed on time, it is advisable to communicate with the Income Tax Department and seek their guidance on the next steps. Sometimes, submitting a formal request or explanation can help mitigate penalties.
5. **Professional Advice:** - **Consult a CA:** Given the complexities of tax audits and compliance, consulting a Chartered Accountant (CA) is crucial. They can provide detailed guidance on filing the return, handling penalties, and any remedial measures.
### Summary:
- **File the ITR-6 and tax audit report as soon as possible,** despite the deadlines. Penalties for late filing will apply, but it’s better to file late than not at all. - **Expect penalties** for late filing and non-compliance with audit requirements. - **Consult a tax professional** for detailed guidance and to ensure that you comply with all regulatory requirements and minimize further issues.
Taking prompt action can help mitigate further complications and penalties.
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