Can a penalty be levied under both the sections ie Section 221 & Section 271C?

Keeping in view all these discussions, in our considered view, both the penalties, i.e., under section 221(1) as well as under section 271C, cannot be imposed as a consequence of the same lapse of short deduction of tax at source. 6.

What is Section 271A?

Section 271A – Penalty for failure to keep / maintain or retain books of accounts, documents etc. Section 44AA of the Income Tax Act read with rule 6F of the Income Tax Rules requires certain specified persons, carrying on business or profession, to mandatorily keep / maintain books of accounts or other documents.

What is Section 271B?

Section 271B of the Income Tax Act imposes a penalty on taxpayers for not getting accounts audited or failure to furnish a tax audit report. The penalty is applicable exclusively if the taxpayer is unable to state a reasonable cause for the lapse.

How do I avoid penalty us 271B?

Ans: In order to avoid the penalty u/s 271b, the specified categories of person are required to get their accounts audited and are also required to furnish the tax audit report within the prescribed time limit.

Can interest and penalty be levied together?

The terminology “default in making a payment of tax and amount of interest payable” are considered to be separate for imposition of penalty and penalty is to be levied on account of default in making a payment of tax. However, the total amount of penalty shall not exceed the amount of tax in arrears.

What is the penalty for not deducting TDS?

All companies, irrespective of government or private, must bear a penalty of Rs. 200/day, under section 234E, for the delay in filing TDS or TCS returns after the specified due date. However, such a penalty will not exceed the amount of TDS for which the statement was required to be filed.

Is 80tta allowed in new regime?

Basically, all deductions allowed under chapter VI-A such as 80C, 80CCC, 80CCD, 80CCG,80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB and 80G, 80GG, 80IA, 80IAB, 80IAC, 80IB, etc are not claimable.

What is section 44AE of income tax?

Section 44AE of Income tax act states that small business engaged in the business of plying, hiring or leasing goods carriages having not more than ten goods carriage vehicles, can adopt the Presumptive taxation scheme for ascertaining the taxable income for a particular financial year.

What is the penalty for non filing of tax audit report?

In case of a delay in completing audit and submitting the report on time (before or on September 30), then 0.5\% of the turnover, a maximum of Rs. 1.5 lakh, has to be paid as penalty. If there is a genuine reason for delay or non-filing of audit report, then as per Section 273B, no penalty will be applicable.

Is penalty allowed as expense?

CONCLUSION: the penalty or fine levied on the assessee is allowed as expenditure under provisions of Section 37(1) only on the basis of their nature, whether such fine or penalty is of compensatory nature or penal nature.

When can penalty proceedings be initiated?

ITAT states that as per the provisions of section 275(1)(c), no order imposing a penalty under this Chapter shall be passed in any case, after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed or six months from the …

Can penalty under section 271b and 271a be levied simultaneously?

ITAT Lucknow has held that penalty under section 271B for failure to get accounts audited and furnish tax audit report u/s 44AB can not be levied simultaneously along with penalty u/s 271A for failure to keep, maintain o retain books of account, documents. IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “A”, LUCKNOW

When to submit tax audit report under section 271b?

Please note, the assessee who is required to get their accounts audited is also required to duly furnish the tax audit report. Such tax audit report is to be submitted within 30 th September of the year following the relevant the Financial Year. The penalty payable under section 271B would be lower of the following –

Did the Assessing Officer initiate section 271a and 271B of the Act?

During the course of hearing of the appeals, the ld. counsel for the assessee has invited our attention that the Assessing Officer initiated penalty proceedings under section 271A and 271B of the Act.

Can the Assessing Officer Levy penalty under section 271B on account of non-auditing?

Since the Assessing Officer has levied penalty under section 271A of the Act, penalty under section 271B of the Act cannot be levied on account of non-auditing of the accounts.