I have not maintained any books of account.
and I have also not done audit under Income tax act.
I am liable for maintaining books of account and also for tax audit.
what is the safer side for me.
16 Replies
ayusmita
(Tax consultant)
(5885 Points)
Replied 18 January 2021
For non maintenance of books penalty under section 217A as per 44AA a maximum of 25000
for not audited then penalty as per 44AB under section 217B maximum of rs 150000
but if you give valid reason for why you unable to do so then no penalty will be there
for not audited then penalty as per 44AB under section 217B maximum of rs 150000
but if you give valid reason for why you unable to do so then no penalty will be there
BE YOURSELF BELIVE YOURSELF
(31 Points)
Replied 18 January 2021
271a penalty max.upto 25000 for books
271b , .50% of turnover or 150000 lower
271b , .50% of turnover or 150000 lower
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 18 January 2021
It is advisable to prepare you book and get it audited soon. Why to wait for penalty
Kapadia Pravin
(17259 Points)
Replied 18 January 2021
Safer side is to maintain book of account and also get it audited if audit provisions apply.
VAMSHI KUMAR
(7 Points)
Replied 18 January 2021
@ ayusmita Excuse me ma'am there is only one penalty because if there non maintenance of books of accounts where comes the audit of them. so only 25000/- will be your penalty. read related case law. thanks
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 18 January 2021
Whole penalty u/s 271 will attract
Kapadia Pravin
(17259 Points)
Replied 18 January 2021
Please take care in citing proper and correct Section of the Act.
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 19 January 2021
As per the supreme court judgement if you do not maintain books of account the penalty can be levied only for not maintenance of books account and not for tax audit.
this is one of the awesome loophole, for if you do not get audited, take penalty of not maintenance of books of account instead of tax audit penalty
this is one of the awesome loophole, for if you do not get audited, take penalty of not maintenance of books of account instead of tax audit penalty
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 19 January 2021
first off all pls. be clear- how much ur turnover & ur income ?
ayusmita
(Tax consultant)
(5885 Points)
Replied 19 January 2021
Can you share the case study of one penalty where's incase someone failed to maintain books of accounts and audit at same time
Kapadia Pravin
(17259 Points)
Replied 20 January 2021
I think both will exist Under 271A and 271B .
Non-maintenance of accounts and for failure to provide books of accounts for audit.
The Department may order for books of account and further for audit.
Non-maintenance of accounts and for failure to provide books of accounts for audit.
The Department may order for books of account and further for audit.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 20 January 2021
Deptt. will first issue Notice u/s 148 and after that they would raise Penalty for non audit.
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