ISO refers to International Organization for Standardization. Here, we will discuss ISO 19011 Certification which is about Auditing Management.

ISO makes sure that the quality of the products and their services can be trusted because they’re safe. Did you know that ISO has its own 21000 International Standards?

Well, it does. And did you know about ISO ‘s technical committee?

The panel of experts that are present on the technical committee develop the ISO standards. They make drafts first and then the votes and comments are given by all the members that are shareholders or consumer associations etc. After proper analysis of the draft, if all the members agree on it, then only it becomes an official ISO standard.

The members of the committee can be consumer associations, various NGOs or the Govt itself. This means the experts are from different parts of the world!

The consumer groups request the standards to be taken into consideration and then the idea becomes the draft, all the views from different shareholders and other experts are analyzed to make the standard finally develop.

ISO’s headquarters are in Geneva, Switzerland. ISO sets standards and the members who are representing standards who are from a national standards organization.

 ABOUT ISO 19011 FOR AUDITION MANAGEMENT:

The ISO standard 19011 is for the auditing management system. It thus provides a reference in auditing of the management system, like conducting of the management system audits and also managing competence of the individuals that are involved in all this. Normally for the organizations that are large in sizes and need maintenance in their systems, that is why Audit programming is needed. Thus To maintain the external or the internal audits, and the auditors are thus paid for the better management of the system.

These standards provide the principles of auditing, managing an audit programme and also conducting of the management system audits, as well as guidance on the evaluation of the competence of individuals involved in the audit process, including the person who is managing the audit programme, auditors, and audit teams.

This is however applicable to all the organizations that need to conduct an internal or external audit of management systems or manage an audit programme.

The methods that are thus highlighted in ISO 19011 if they are followed can make the internal audits more effective. All the activities of management can thus be organized and it can also be followed smoothly because the audit programming and the evaluation of competence were in the process from the start! Consistency will be there, so there will be the togetherness of the internal audit system.

Thus, the ISO Application 19011:2011 to the other types of audits is possible, provided that special consideration is given to the specific competence which is needed.

Small companies may however not follow the norms but they are a must if the large organizations are in the picture. Also, the process of proper planning and also the intellect is required so that nothing goes out of hand in the future.

For more information on ISO 19011 Certification, we would love to hear your feedback.

 

Penalties

Different penalties have been directed for various defaults committed by the taxpayer, under the Income Tax Act. Some of them are mandatory and a few are at the consideration of the tax authorities. Given below are the provisions relating to various penalties leviable.

Incorrect Form

In case an incorrect form has been used to file the returns, then it will be treated as “defective” and the assessee will be asked to file a revised ITR using the correct form.

Now, the taxpayer gets some time to amend the mistake. And the return must be filed within 15 days from the date of receipt of the intimation, as per Section 139(9). This time limit may be extended by the assessing officer (AO) on an application by the assessee. If the defect is not corrected within the stipulated time, then it will be treated as an invalid return. That is the same as not filing a return at all.

Therefore, the person will be facing all the penalties prescribed to not filing ITR. As well as, interest will get charged, u/s 234A, for the delay.

Under-reporting

If it is found that the actual income exceeds the income declared by the person. Or when no return has been filed despite income exceeding the basic exemption limit. Penalty at 50% of tax payable on such under-reported income shall be payable.

200% of the tax will get if under-reporting results from misreporting of income.

Late Filing

As per Section 234F of the Income Tax Act, if you file after 31st July (it was extended to 31st August for AY 2019-2020) but before December, a penalty of Rs. 5000 will be levied. For returns filed after December, the penalty will be Rs. 10,000.

However, to provide relief to small taxpayers, the IT department has stated a maximum penalty of only Rs. 1,000 will get levied. The condition is that your total income is less than Rs 5 lakh.

Penalty for Default

In case a demand notice u/s 156, has been issued to the taxpayer for payment of tax (other than notice for payment of advance tax). Then such amount, as per section 220(1), shall be paid within 30 days of the service of the notice at the place and to the person mentioned in the notice. If the taxpayer defaults in payment of any tax due, then apart from other penal provisions, he is treated as an assessee in default. For an assessee in default, the penalty will get levied as decided by the AO. However, the penalty cannot exceed the amount of arrears in tax.

Before penalizing, the taxpayer is given a reasonable opportunity of being heard. No penalty is levied if the taxpayer can prove that the default due to a good and sufficient reason.

Delay in filing the TDS/TCS statement

Every person liable to deduct tax at source is liable to furnish the statement of TDS, as per Section 200(3). It is termed as TDS Return. And every person liable to collect tax at source, as per Section 206C (3), has to file a statement in respect of TCS, i.e. TCS Return.

If a person fails to file the TDS/TCS return on or before the due date prescribed, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day of the delay, as per Section 234E. This amount, however, shall not exceed the amount of TDS/TCS. A late TDS/TCS return cannot be filed this late fee.

Penalty in case of income from undisclosed sources 

The AO may make an addition to the income of a taxpayer as per Section 68, 69, 69A, 69B, 69C or 69D if the explanation about the nature and source of his income is not satisfactory. 

The AO is empowered to levy penalty at the rate of 10% of the tax payable if any addition is made. However, no penalty shall be levied if this income has been disclosed in the ITR and tax paid, u/s 115BBE, on or before the end of the relevant previous year. 

Fee for default in furnishing return of income 

The taxpayer, who is required to furnish ITR u/s 139 failed to furnish return of income within due date as prescribed under section 139(1) then as per section 234F, he will be liable to pay penalty same as delayed filing.