Examination of books of accounts to ensure compliance with provisions of the Income Tax Act.
A tax audit is conducted to verify whether a business has maintained proper books of accounts and complied with the provisions of the Income Tax Act. It involves reporting prescribed information in a tax audit report, which is filed with the authorities as part of annual tax compliance. For businesses, this process ensures accuracy in tax reporting and helps avoid potential disputes or penalties.
To confirm that books of accounts are properly maintained.
To ensure correct reporting of income, deductions, and compliance with tax laws.
To identify discrepancies or errors that may impact tax liability.
To provide certification through a tax audit report for statutory filing.
Verification of Accounts: Checking books, vouchers, and ledgers for accuracy.
Compliance Review: Ensuring adherence to Income Tax provisions.
Tax Audit Report Preparation: Reporting prescribed particulars as per statutory requirements.
Risk Identification: Highlighting potential tax exposures and suggesting corrective measures.
Ensures compliance with income tax requirements.
Minimizes the risk of penalties and interest due to misreporting.
Builds confidence in tax records for assessments and scrutiny.
Provides management with insights into tax positions and exposures.
