Clause 446 of Income Tax Bill 2025 imposes penalties for audit non-compliance, with stricter liability than Section 271B

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....The proposed Clause 446 of the Income Tax Bill, 2025, mandates penalties for failure to get accounts audited or to furnish audit reports as required, mirroring the existing Section 271B of the Income-tax Act, 1961. Both provisions impose a penalty capped at 0.5% of turnover or gross receipts, not exceeding Rs. 1,50,000, and empower the Assessing Officer to impose such penalties. Key differences include updated terminology, a shift from "previous year" to "tax year," and the absence of an explicit "reasonable cause" defense in Clause 446, potentially indicating stricter liability. While Section 271B allows relief under general provisions, Clause 446's omission of this safeguard may increase enforcement rigidity. The clause reflects legislati.........