Section 271B → Section 348
Failure to get accounts audited
Quick Answer
Section 271B of the Income Tax Act, 1961 (Failure to get accounts audited) corresponds to Section 348 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 271B
Under the Income Tax Act, 1961, Section 271B governs 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).
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 271B is retained and renumbered as Section 348 of the Income-tax Act, 2025. Retained. Linked with the turnover limits of Section 44AB.
The transition impact on Section 271B is assessed as Medium. Compliance cost for businesses.
Sec 271B
Provision Summary
Penalty for not getting a Tax Audit done (0.5% of turnover or Rs. 1.5 Lakhs, whichever is lower).
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
Which subject does Section 271B of the 1961 Act cover?
Section 271B of the Income Tax Act, 1961 covers 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 Income-tax Act, 2025?
Section 271B of the Income Tax Act, 1961 maps to Section 348 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Linked with the turnover limits of Section 44AB.
How does the Income-tax Act, 2025 affect Section 271B in practice?
The transition impact for Section 271B is rated Medium. Compliance cost for businesses.
What is new about Section 271B under the Income-tax Act, 2025?
Portal automatically calculates and suggests this penalty if 44AB report is filed after the due date. These points are specific to Section 271B (Failure to get accounts audited).
Disclaimer: This mapping of Section 271B (Failure to get accounts audited) to Section 348 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 271B is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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