Penalty for Failure to Keep, Maintain, or Retain Books of Account
Nature of Default
• Failure to keep or maintain books of account and other documents as mandated by Section 44AA.
• Failure to retain such books and documents for a period of 6 years.
• A separate penalty under Section 271B applies for failure to get accounts audited as required under Section 44AB.
Quantum of Penalty
• Rs. 25,000 may be imposed by the Assessing Officer, Joint Commissioner (Appeals), or Commissioner (Appeals).
• Penalty shall not be levied if the assessee proves reasonable cause for the failure.