Penalty and Late Fee on Compliance

“Every year, numerous small businesses find themselves paying substantial penalties to the government for late filing of various statutory returns, amounting to lakhs. These Penalties and Late Fee’s on Compliance, unfortunately, are not tax-deductible and can significantly impact a business’s bottom line. At EYC International, our primary goal is to provide affordable services to our customers and help them steer clear of these costly penalties. To achieve this, we have invested in cutting-edge enterprise-grade technology that delivers proactive alerts about upcoming compliance requirements, enabling businesses to avoid penalties altogether. Our comprehensive compliance services cover a wide range of needs. We encourage you to explore these services, engage with our expert advisors, and put an end to unnecessary late fees.”

Penalty and Late Fee on Compliance

Fines and Penalties for Late Annual Compliance in India

In India, failing to comply with annual compliance requirements can lead to fines and penalties for various entities. These penalties are enforced to ensure timely adherence to legal and regulatory obligations. Here’s an overview of the fines and penalties applicable to different entities for late annual compliance:

Private Limited Company

1. Annual Return (Form MGT-7) and Financial Statements (Form AOC-4):
   • Late Filing Penalty: The penalty for late filing is substantial and accrues on a daily basis.
   • Additional Fees: Additional fees apply based on the duration of delay.
2. Income Tax Return (ITR):
   • Late Filing Penalty: A penalty of Rs. 100 per day of delay under Section 234F, up to Rs. 10,000, depending on the delay.
3. GST Return (GSTR-3B and GSTR-9):
   • Late Filing Penalty: Rs. 50 per day of delay (Rs. 20 for nil return), subject to a maximum of Rs. 5,000.
4. TDS Return (Form 24Q, 26Q, 27Q, etc.):
   • Late Filing Penalty: A penalty of Rs. 200 per day of delay under Section 234E, limited to the amount of TDS.

Limited Liability Partnership (LLP)

1. Annual Return (Form 11):
   • Late Filing Penalty: Rs. 100 per day of delay.
2. Income Tax Return (ITR-5):
   • Late Filing Penalty: Similar to private limited companies under Section 234F.
3. GST Return (GSTR-8, if applicable):
   • Late Filing Penalty: Similar to private limited companies.
4. TDS Return (Form 26Q, 27Q, etc.):
   • Late Filing Penalty: Similar to private limited companies under Section 234E.

Sole Proprietorship/Individuals

1. Income Tax Return (ITR):
   • Late Filing Penalty: Similar to private limited companies under Section 234F.
2. GST Return (GSTR-1, GSTR-3B):
   • Late Filing Penalty: Similar to private limited companies.
3. TDS Return (Form 26QB, 26Q, etc.):
   • Late Filing Penalty: Similar to private limited companies under Section 234E.

Penalty and Late Fee on Compliance

How EYC International Can Help

EYC International specializes in ensuring timely and accurate compliance for all types of entities in India. Here’s how we can assist:

1. Comprehensive Compliance Services:
   • We offer end-to-end compliance services, including annual return filings, financial statement submissions, income tax returns, GST returns, and TDS returns for private limited companies, LLPs, sole proprietorships, and individuals.
2. Timely Reminders and Notifications:
   • Our automated systems ensure that you receive timely reminders and notifications well in advance of compliance deadlines. This helps you avoid late filing penalties.
3. Expert Guidance and Support:
   • Our team of experienced professionals provides expert guidance on regulatory changes and compliance requirements specific to your entity type. We ensure that all filings are done correctly and on time.
4. Penalty Mitigation Strategies:
   • In cases where late filings have occurred, we assist in mitigating penalties by filing appeals, if applicable, and by taking proactive steps to rectify compliance errors.
5. Technology-driven Solutions:
   • Utilizing advanced technology, we streamline the entire compliance process, making it efficient and hassle-free for our clients. Our online platform allows for secure document sharing and real-time tracking of compliance status.
6. Customized Compliance Plans:
   • We tailor our services to meet the unique needs of each client, ensuring that compliance efforts are aligned with business objectives and regulatory requirements.

Partner with EYC International for Seamless Compliance

Don’t let late filings lead to unnecessary fines and penalties. Partner with EYC International to ensure your entity’s annual compliance obligations are met promptly and accurately. Focus on growing your business while we handle the complexities of regulatory compliance, safeguarding your financial health and legal standing in India. Contact us today to get started!