This audit is required under section 44AB of Income Tax Act. This audit includes reporting in prescribed form 3CA/3CB & Annexure in form 3CD.
The scope includes Verification of
- Details of nature of business
- Method of accounting
- Books of account maintained
- Input Tax Credit availed
- Payment of cash in excess of Rs. 10,000/-
- Proper deduction/collections of TDS/TCS & payment of TDS/TCS in time
- Dividend Distribution
- Acceptance & Repayment of Loan
- Payment of penalty
- Payment to related parties
- Prior period expenses
- Disallowance u/s 14A etc.
- Calculation of Depreciation as per Income Tax Act, 1961
On the basis of this report, the assessing officer takes Decision for tax assessment. The appointment of tax auditor is made by the management.
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