(i) Proposed Amendment
In section 27 1B of the Income-tax Act, for the words “one hundred thousand rupees”, the words “one hundred fifty thousand rupees” shall be substituted with effect from the 1st day of April, 2011.
(ii) From Notes on Clauses
Clause 50 of the Bill seeks to amend section 27 1B of the Income-tax Act relating to failure to get accounts audited.
The existing provisions contained in the aforesaid section provide that if any person fails to get his accounts audited in respect of any previous year relevant to an assessment year or furnish a report of such audit as required under section 44AB, the Assessing Officer may impose a penalty equal to one-half per cent, of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such previous year or a sum of one lakh rupees, whichever is less.
It is proposed to enhance the said limit from one lakh rupees to one lakh fifty thousand rupees.
This amendment will take effect from 1st April, 2011, and will, accordingly, apply in relation to the assessment year 2011-2012 and subsequent years.
(iii) Effect of the amendment