Penalty re Failure to Get Accounts Audited

Section 447 — - PENALTY RE FAILURE TO GET ACCOUNTS AUDITED

Section 447 of the Income-tax Act, 2025 corresponds to s. 271B of the Income-tax Act, 1961.

STATUTORY ARCHITECTURE

0.5% of total sales or turnover or gross receipts subject to maximum INR 1,50,000. Non-compliance with s. 63 [44AB tax audit].

PRACTITIONER PLANNING NOTES

• Reasonable cause defence (illness, technical or portal failure) may be invoked.
• Common: assessees on borderline (just above turnover threshold) overlook s. 63; obtain CA audit even where presumptive opted to be safe.

CROSS-REFERENCES

• s. 439 (under-reporting or misreporting -- master penalty).
• s. 440 (immunity application).
• s. 469 or 470 (waiver or reasonable-cause).
• s. 471 or 472 (procedure or limitation).