The amended guidance Note on Tax Audit assists its members to release their responsibilities, within time, under the income tax law, circulated by the CA institute. The new guidance Note the eighth edition was approved, during the meeting of the central council of the Institute of Chartered Accountants of India (ICAI) at Siliguri.
Debashis Mitra, President of ICAI, told BusinessLine. “We have in the recent council meeting approved the revised Guidance Note on Tax Audit. It’s going to be a big change as it is being done after seven or eight years”,
The tax audit report format needs to be amended very much, as the former amendment in the year 2014 i.e enhanced the obligation of the chartered accountants, releasing their duties for that. Also on some of the issues, guidance would have been needed for the GST.
Tax audits applied, since the year 1984. In 1985, the first Guidance Note was issued. The ICAI has amended its Guidance Note on Tax Audit from time to time, in the years 1989, 1998, 1999, 2005, 2014, and 2022.
A tax audit is an investigation of that assessee’s books of account and another related record. This search is for ensuring that when the tax audit is performed the individual liable to issue the tax audit report would be anticipated to validate financial statements upon the calculation of the income is based are correct along with the particulars furnished in form No 3CD would be correct.
This is a burdensome obligation that there would be a requirement for delivering guidance on the conduct of audits and issuing of the tax audit report. The ICAI is a regulator of the audit profession and furnishes a Guidance Note for tax audits over time.
To stop the bogus activities a tax audit would get introduced. The tax audit permits to be performed only through the means of practising chartered accountants.
The new version of Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961 has been updated over time by the Direct Taxes Committee of ICAI, post start of the revisions in the laws for the information and support of the Members. Section 44AB of the Income-tax Act comprises provisions relating to the tax audit under the Income Tax Act.
