Every corporate entity or any other person who is carrying on business and whose sales or turnover exceed 40 lakhs in any previous year would be required to get his accounts audited by the accountant on or before 30-9-2010.
What happens if the returns are not filed by due date?
- Interest: You will be liable for penal Interest u/s 234A @ 1% per month on the amount of tax due from the due date of filing returns.
- Penalty: 0.5% of turnover or 100000 which ever is lower.
- Deductions: Deductions u/s 10A, 10B, 80-IA, 80-IAB, 80-IB and 80-IC are not allowed
- Revision: Late /belated returns cannot be revised.
- Carry Forward of Losses: Losses like Business Loss (speculative or otherwise), Capital Loss (short term or long term), and Loss from owning and maintaining race horses are not allowed to be carried forward. Other losses, if any can be carried forward.