Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961 (Revised 2023)
1. Introduction
What is audit?
1.1 The dictionary meaning of the term “audit” is check, review, inspection, etc. There are various types of audits prescribed under different laws; for example, company law requires a company audit, cost accounting law requires a cost audit, etc. Tax Audit
1.2 The Income-tax Law requires the taxpayer to get the audit of the accounts of his business/profession from the view point of Income-tax Law. Section 44AB entails the provisions relating to the class of taxpayers who are required to get their accounts audited from a chartered accountant. The audit under section 44AB aims to ascertain the compliance of various provisions of the Income-tax Law and the fulfillment of other requirements of the Incometax Law. The audit conducted by the chartered accountant of the accounts of the taxpayer in pursuance of the requirement of section 44AB is called tax audit.
1.3 The chartered accountant conducting the tax audit is required to give his findings, observation, in form 3CA and 3CB, of audit report. The report of tax audit is to be given by the chartered accountant in Form Nos. 3CA/3CB and statement of particulars in Form 3CD.
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