What is the penalty for not getting a tax audit done?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerNot getting a required tax audit done attracts a penalty under Section 271B of 0.5% of turnover or gross receipts, capped at ₹1,50,000. The penalty can be waived if you show reasonable cause for the delay.

271B: 0.5%, max ₹1.5 lakh

0.5% of turnover/receipts up to a ₹1,50,000 cap, for not getting or not filing the audit on time.

Reasonable cause

Genuine reasons (illness, records lost, first year) can get the penalty dropped, but you must explain it.

Audit

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This answer is general information for businesses, not professional advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.