Late filing of form 3cb & 3cd

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Swathi hebbar (Querist)
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09 October 2013 Dear Sir,

For one of our client(proprietor), i have filed Form 3CB,3CD & Income tax return on 7/10/13. In Form 3CB i have taken audit report date as 7/10/13 instead of 30/9/13.
Would it be a problem? Will any penalty be attracted?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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09 October 2013 Yes, it will attracts penalty of 0.5% on gross turnover or receipts upto maximum of Rs.1.50 lacs, but it shall be levy by the AO. If AO levy penalty and issued a demand notice then you have to pay penalty till that time you need not to pay any penalty.

However if the reason behind on the late filing and late audit is satisfied by the AO and is unavoidable reason he feels then he may forgive penalty or decrease the penalty.

So your case attracts penalty but it depending on the AO and reason for delay.

OM SAI SRI SAI JAI JAI SAI

Swathi hebbar

Swathi hebbar (Querist)
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09 October 2013 Sir,

Is it because of Late filing or because of wrong mentioning of date in audit report?

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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09 October 2013 Tax audit can be do later means after 30-9-2013. Date on the audit report shall indicate the date of the tax audit completed. So in your case both means late filing and late tax audit.

So penalty shall apply always for late filing of audit report not for late doing of tax audit, in your case audit also completed by late means it clearly indicates assessee has failed to complete his audit with in due time and filing of audit report, so in your case levy of penalty is very high.

OM SAI SRI SAI JAI JAI SAI