Income Tax Act 2025: Section 446 for Tax Year 2025-26

Penalty for not auditing accounts under Section 446: 0.5% of sales/receipts or ₹1.5 lakh, whichever is lower, for Tax Year 2025-26.

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Failure to get accounts audited

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

If any person fails to get his accounts audited for any tax year or years or furnish the audit report as required under section 63, the Assessing Officer may impose a penalty on such person, which shall be the lesser of––

(a) 0.5% of the total sales, turnover, or gross receipts in business, or the gross receipts in profession for such tax year or years; or

(b) one lakh fifty thousand rupees.


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