ITR
Missed the tax audit report date as a trader
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Facts
Under the 1961 Act, failure to get accounts audited and file the report can attract a penalty of 0.5% of turnover, up to ₹1,50,000, unless reasonable cause is shown. File the report as soon as possible.
Provisions and law
- Sec 271B (now Sec 446)Penalty for failure to get accounts audited
- Sec 44AB (now Sec 63)Tax audit if business turnover exceeds ₹1 crore, or ₹10 crore where cash receipts and payments are each within 5%
- Sec 273B, Income-tax Act 1961No penalty if reasonable cause is shown
Analysis
On F&O turnover of ₹12 crore, the penalty could be ₹1,50,000 at the cap. Filing late and showing a reason, such as delay in getting broker data, can help. The ITR filed by 21 November 2026 still counts as on time, protecting the loss carry forward. Do not skip filing the report.
Conclusion
- Get the audit completed and upload the report at once
- File ITR-3 by 21 November 2026
- Keep a note of reasons for delay
- Reply with reasonable cause if a penalty notice comes
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