Published on Jul 08, 2025
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Penalties & Non-Compliance under Sections 44AA & 44AB
Penalties for Non-Compliance
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Section 271A: Failure to maintain books (Sec 44AA) → Penalty ₹25,000.
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Section 271B: Failure to get audit (Sec 44AB) → Penalty = 0.5% of turnover/gross receipts (max ₹1,50,000).
- Filing incorrect/delayed reports → further penalties + reassessment.
Why Compliance Is Crucial
- Avoid penalties & legal issues.
- Strengthens financial discipline.
- Helps in smooth tax assessments.