Tax Audit under Income Tax Act
A tax audit under the Income Tax Act is a statutory requirement for businesses whose turnover or receipts exceed prescribed thresholds. Its primary objective is to ensure that taxpayers maintain accurate financial records and comply with tax regulations, thereby reducing the scope for tax evasion and disputes with authorities.
By verifying books of accounts, compliance with tax provisions, and prescribed reporting requirements, the audit provides both the assessee and the tax authorities with greater clarity. It also highlights potential risks, inaccuracies, or inefficiencies in financial systems, enabling corrective action before regulatory intervention.
About This Service
Our tax audit services are designed to help businesses fulfill their statutory obligations under the Income Tax Act while ensuring full compliance with all applicable rules and guidelines issued by the Institute of Chartered Accountants of India (ICAI). The audit provides a detailed review of the company’s accounts to ensure they reflect true and fair business transactions in alignment with tax law provisions.
We examine income and expenditure records, depreciation claims, deductions, and compliance with TDS/TCS requirements. The process also involves preparing and certifying the prescribed audit report in Form 3CA/3CB and Form 3CD, which detail compliance with over 40 reporting clauses.
Our approach emphasizes accuracy, transparency, and value addition. Beyond statutory compliance, we provide insights into tax risk exposures, internal control gaps, and process improvements that can enhance operational efficiency and reduce the likelihood of penalties or litigation.
By engaging with us, businesses gain the confidence that their tax affairs are managed responsibly and that they meet the highest standards of compliance, thus safeguarding their reputation and minimizing exposure to regulatory scrutiny.
Key Features / Scope of Work
Conducting a thorough review of financial records in line with Income Tax Act provisions.
Examination of compliance with prescribed thresholds for audit applicability.
Verification of income, expenses, deductions, and depreciation claims.
Review of TDS/TCS compliance and reporting obligations.
Preparation and certification of tax audit reports in Form 3CA/3CB and Form 3CD.
Identification of tax risks and potential areas of non-compliance.
Recommendations for strengthening tax controls and record-keeping systems.
Providing assurance to stakeholders and authorities on the accuracy of reported tax data.
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