CMA Intermediate · Corporate Accounting and Auditing · National Financial Reporting Authority (NFRA)
CA firm Mehta & Associates is found by NFRA to have committed proved professional misconduct. The minimum penalty NFRA can impose on the firm under section 132(4)(c) is:
The minimum penalty for a firm is rupees five lakh, extendable up to ten times the fees received. The earlier figure of ten lakh was replaced by five lakh, and the one lakh minimum applies only to individual members.
- ARupees one lakh
- BRupees five lakhCorrect
- CRupees ten lakh
- DFive times the fees received
Explanation
For firms the penalty is not less than five lakh rupees (substituted for ten lakh from 9-2-2018) and may extend to ten times the fees received. One lakh is the minimum for individuals. Ten lakh was the old minimum.
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