Income Tax Audit
A tax audit verifies whether a taxpayer's books of accounts comply with the Income Tax Act and accounting standards. It ensures accurate income computation, proper record maintenance, and helps detect fraud. However, a tax audit does not exempt taxpayers from scrutiny or expense disallowance. Only a practicing Chartered Accountant can conduct a tax audit.
For businesses seeking tax consultancy or business compliance services, understanding tax audit requirements is crucial. Form No. 3CA/3CB serves as the audit report format, while Form 3CD contains the statement of particulars required under Section 44AB of the Income Tax Act.
If an assessee is required to get their books of accounts audited under another law, they can submit the audit report under that law. However, they must also furnish a tax audit report in Form 3CA and 3CD, certified by a Chartered Accountant, by the prescribed due date.
