Full Concept of Tax Audit Reports Revision with Guidelines

The investigation of the books of accounts of the assessee is called a tax audit which is done by the Chartered Accountant under the Income Tax Act 1961. Section 44AB functions through the situation beneath which the tax audit gets essential for specific assessments. The thought of the tax audit is to validate the preciseness of the fiscal records along with the avoidance of any bogus or tax theft.

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The Idea of the Tax Audit Revision

The law for a tax audit is provided under section 44AB. The concerned segment of the section concerning the article is again available beneath here.

44AB. Every individual taken his accounts of the former year audited through the accountant prior to the mentioned date and filed through the same date on which the report of these audits in the mentioned form signed and validated through the accountant and setting nextly these credentials might be prescribed: under section 2(33) of the act prescribed pointed through the rules built beneath the act; Rule 6G of the Income Tax Rules, 1962 prescribes the “Form” of the audit report and the “Particulars” that are obliged to be set next. Rule 6G states as follows:

• 6G. (1) the report of the audit of the accounts of the individual needed to be filed beneath section 44AB will:
  • Towards the concern of the individual on the business or profession and who are needed through or beneath the additional law to make the accounted audited, be in Form No. 3CA.
  • Towards the individual who ruled on business or profession however not being an individual referred to in clause (a), be in Form No. 3CB.
• (2). The credentials that are needed to be filed beneath section 44AB will be in Form No.3CD

A Tax Audit can be Amended

Section 44AB and rule 6G do essentials and outlaw provisions associated with the amendment of the tax audit report. “The Income Tax (Eighth Amendment) Rules, 2021 has inserted sub-rule (3) in rule 6G vide towards the issues faced by assessees because of the provisions of section 40 and” section 43B of the Act through Notification No. 28/2021 dated 1.4.2021, w.e.f. 1.4.2021, as follows:

“(3) The report of audit furnished under this rule may be revised by the person by getting a revised report of audit from an accountant, duly signed and verified by such accountant, and furnish it before the end of the relevant assessment year for which the report pertains if there is payment by such person after furnishing of the report under sub-rule (1) and (2) which necessitates a recalculation of disallowance under section 40 or section 43B.”

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As per that if there is a payment u/s 40 or u/s 43B through these individuals after filing the report beneath sub-rule (1) and (2) along with any qualification performed towards Form 3CD, this might cause recomputation of dismissing beneath section 40 or section 43B. Hence towards the goal of the same, the tax audit report might be amended in the way given in sub-rule (3).

Amended Rule 6G With Within Sub-rule (3)

Rule 6G prescribed with the following after the above insertion of rule:

• 6G 1. The report of the audit of the accounts of the individual needed to get filed beneath section 4AB will:
  • The report of the audit of the accounts of the individual needed to get filed beneath section 44AB
    • Towards the concern of the individual who is doing the business or profession and who is needed through any additional to make his account audited under Form No. 3CA;
    • Towards the concern of the individual on the business or profession however not an individual mentioned in clause (a), be in Form No. 3CB.
• The credentials that are needed to get filed beneath section 44AB will come in Form No. 3CD.
• The report of the audit filed beneath the rule might be amended through the individual through getting the improved audit report via an accountant signed and checked through the same accountant and files it prior to the finish of the related assessment year towards which the report is related if there is payment through these individual post-filing report beneath sub-rule (1) and (2) which all requires recalculation of denying beneath section 40 or section 43B.

Who can Amend it?

Towards the above view presently under rule 6G (3), w.e.f. 1.4.2021 the tax audit report in Form No. 3CA, Form No. 3CB and Form No. 3CD can be amended. This can be amended post it is field beneath rule 6G. The above outcome reveals assistance from the action post to filing the report under sub-rule (1) and (2)” practiced in the further portion of the sub-rule (3). This could be amended through the individual who is under the compliance to obtain his accounts which are audited as per the provision of section 44AB. This can be amended in the way as mentioned below:

• Through obtaining the amended report of the audit via an accountant which is signed and validated through these accountants and
• Through filing the amended report
• The amended report is to be filed prior to the finish of the assessment year towards which the report is relevant.

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Assistance on The Amendment of the Tax Audit

Guidance Note of Tax Audit u/s 44AB of Income Tax Act-1961 tells that towards the specific cases members are urged to report for the accounts reopened and amended through the board of directors. The accounts of the firm once chosen during its AGM must not be opened again and amended. Towards the concern of the amendment, the audit report must be provided through the recommended method through the institute. “(Published in the Chartered Accountant, pp.655, February 1985. Also refer to Revision/Rectification of Financial Statements, published in Compendium of Guidance Notes – Volume I)”. The council of the company affairs indeed mentioned that the accounts can be amended to 44AB must not get amended in a regular way. But often a time the member might be needed to amend his tax audit report upon the basis like:

• The amendment of the company accounts post its adoption in the AGM.
• The amendment of the law is like the retrospective amendment.
• Revision in interpretation, like. CBDT’s circular, judgments, and others
• Any additional cause such as the system or software issues needed the amendment in the report which was uploaded formerly.

Moreover, post to uploading the tax report if it is found by the auditor that his customer is involved in some other business indeed this has not been revealed to him during the original tax audit time. Towards the same cases, the tax auditor is ruling all the rights to amend the original tax audit report during its 1st reporting and can see for any action through the tax council. It is good to calculate the amended total taxable income of the customer and the amended tax liability. There are various people who said that the auditor might be at risk because of its 1st audit report, The auditor is subjected to amend that in their own rights.

Amended Audit Report Could be Changed Again

There is no restriction to amend the tax audit reports. The recommendation from the assistance notice and the council is that this must be in the method recommended in SA-560. When the Guidance Note of Tax Audit u/s 44AB of Income Tax Act-1961 provides transparency that the tax audit report must not get amended in a normal way. But no limit is there in changing through the rider which can be changed to match some of the technical needs. This must be sure that the latest amended report must pose the reference of the older reports and must be signed on the present date.

CBDT or UDIN Furnishes Facility for Amendment

The member is called towards the amended accounts then he should write in the changed report specifying that the report is the amended report and the reference must be built to the previous report. In the amended report the cause for amendment the report must be shown.

The e-filing portal permits to upload of these revised audit reports via CA towards the similar PAN and the assessment year. Moreover, the CBDT furnished the utility for furnishing or uploading the tax audit report moreover added beneath the heading OTHERS in the uploading tab.

However, here one can write anything and upload it on the website of the department. You should indeed do comments or observations for the particular class of Form No. 3CD that are to be written in e-form in the space given in same. In another way, they could be uploaded as PDF files inside the filed of the upload other reports of the portal.

The UDIN was given the option to furnish the tax audit report for the prior years. One can generate the latest Unique Document Identification Number (UDIN) by opting for the related assessment year via drop our list mentioned in the system. Moreover, no revision limit is there for it.