Payment of Additional Fees on Delayed Filings
If a company files Form AOC-4 or MGT-7 after the due date, then it shall be liable to pay the additional government fees of Rs. 100 per day per form. For other forms, it shall vary from 2 times to 12 times of the normal government fees, depending on the delayed time period.
Penalty on the Company for default in filing Annual Return and Financial Statement
If the company fails to file financial statement and annual return in Form AOC-4 and MGT-7 within the required time period, then it shall also be liable to a penalty of Rs. 10,000 which shall extend to Rs. 2 lakhs, with further penalty of Rs. 100 for each day.
Penalty on the Officer who is in default in filing Annual Return and Financial Statement
If a company fails to file a financial statement and annual return in Form AOC-4 and MGT-7 within the required time period, then the officer who is in default or the directors shall also be liable to a penalty of Rs. 10,000 which shall extend to Rs. 50,000, with a further penalty of Rs. 100 for each day.
Company liable for Strike Off or Closure by ROC
If the company does not file a financial statement and annual return to the ROC for a period of 2 years and if the ROC believes that the company is not carrying on any business or operation, then it shall send a notice to company/directors and remove its name from the Register of Companies (ROC)
Disqualification of Director
If Company does not file financial statement and annual return for a continuous period of 3 years, then the Directors of such company shall be disqualified from being appointed as Director in any company for a period of 5 years.
Penalty for Not Filing Income Tax Return (ITR)
As per Income Tax Laws, if company files ITR after the due date then a penalty of Rs. 5000 to 10,000 shall be payable by the company. Further, company won’t be able to carry forward or set off your losses to subsequent years.