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ITA 1961 → DTC 2025Penalties

Section 271B Section 348

Failure to get accounts audited

RetainedMedium - Compliance cost for businesses.

Quick Answer

Section 271B of the Income Tax Act, 1961 (Failure to get accounts audited) corresponds to Section 348 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.

Old Law (ITA 1961)Ch: XXI

Sec 271B

Provision Summary

Penalty for not getting a Tax Audit done (0.5% of turnover or Rs. 1.5 Lakhs, whichever is lower).

New Law (DTC 2025)Ch: XXIV

Sec 348

Provision Summary

Retained. Linked with the turnover limits of Section 44AB.

Key Changes & Highlights

  • Portal automatically calculates and suggests this penalty if 44AB report is filed after the due date.

Related Sections

Frequently Asked Questions

What does Section 271B of the Income Tax Act 1961 deal with?

Section 271B (Failure to get accounts audited) Penalty for not getting a Tax Audit done (0.5% of turnover or Rs. 1.5 Lakhs, whichever is lower).

What is the new section number for Section 271B under the Direct Tax Code 2025?

Section 271B of the ITA 1961 maps to Section 348 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.

What is the status of Section 271B under the new tax code?

Section 271B is marked as "Retained" with status "Active". Impact: Medium - Compliance cost for businesses.

What are the key changes to Section 271B under DTC 2025?

Portal automatically calculates and suggests this penalty if 44AB report is filed after the due date.

Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.

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