If an audit report is not filed within the due date, the following penalties and consequences may apply:

• Late fee: For late tax filing, a late fee of Rs 5000 would be applied.
• Penalty: If the audit report is not filed within the stipulated time, the penalty would be levied via assessing officer under section 271B: 0.5 per cent of the turnover, gross receipts, or total sales, or Rs 1,50,000, whichever is lower.
• Losses: For the late tax return filing, there shall be no losses permitted to be taken forward.
• Interest: Interest u/s 234A will be applied.
• Discretion of the assessing officer: Although the assessing officer has the discretion to issue a notice regarding the tax penalty, taxpayers are not discouraged from filing the tax audit reports even after the due date, and the same can be filed if it is compliant with the regular provisions. An assessee can even drop off the notice if they provide a bonafide explanation for the delay.
• No extension: If no extension is given by CBDT and if you are unable to file the tax audit report within the due date, you will be liable for the penalty as per section 271B.

It is essential to file the audit report within the due date; otherwise, the penalty is levied by the assessing officer as per section 271B. However, if there is a genuine reason for delay or non-filing of the audit report, then as per Section 273B, no penalty will be levied.