The final deadline to file your Income Tax Audit Report for FY 2023-24 is October 7, 2024. With only seven extra days beyond the original September 30, 2024, deadline, taxpayers need to act fast. Waiting for another extension could lead to severe financial consequences.
What Happens If You Miss the Deadline?
The Income Tax Act’s Section 44AB clearly outlines the penalties for late filing. If you miss the deadline, the penalty will be 0.5% of total sales or turnover or Rs 1.5 lakh, whichever is lower. Therefore, it’s essential to complete the audit by September 30, 2024, and file the report electronically by October 7, 2024.
Consequences of Non-Compliance
Missing the deadline can cause multiple issues:
- Defective ITR: Your Income Tax Return (ITR) may be marked as defective if the audit report isn’t uploaded. Rectifying this will require extra effort and time.
- Belated Returns: If you miss the October 31, 2024, deadline for filing the ITR, you will have to file a belated return, which comes with:
- Late Fees under Section 234F: Rs 1,000 for incomes below Rs 5 lakh and Rs 5,000 for incomes above that.
- Interest on unpaid taxes: Under Section 234A, the interest on outstanding taxes will continue to accrue.
- No Carry-forward of Losses: A belated return also blocks the carry-forward of business or capital losses.
Additional Penalties for Not Filing ITR
If you submit the audit report but fail to file the ITR, the following penalties apply:
- Section 271F Penalty: The assessing officer can impose a Rs 5,000 penalty.
- Interest on Due Taxes: Section 234A imposes interest on any unpaid tax amounts.
- Reassessment Notices: Under Section 148, the Income Tax Department may reassess your income and issue notices for further scrutiny.
- Prosecution: For major violations or significant tax liabilities, the department could initiate legal proceedings.
Timely Filing: Key to Avoiding Penalties
It is crucial to stay compliant and avoid unnecessary penalties. To do this:
- Ensure the audit is completed by September 30, 2024.
- File the report electronically by October 7, 2024.
- Submit your ITR by October 31, 2024, to avoid interest and penalties.
Act now to protect your business from these financial penalties and safeguard your compliance status.
Key Takeaways:
- The tax audit report must be submitted by October 7, 2024.
- Missing this deadline can lead to a penalty of Rs 1.5 lakh or 0.5% of sales.
- Your ITR must be filed by October 31, 2024, to avoid further penalties.
Filing on time ensures you stay compliant and avoid complications later. Don’t leave it until the last minute—act today!