Description
Tax Audit is a comprehensive and updated treatise meticulously designed to address all aspects of tax auditing under Section 44AB of the Income-tax Act. This Edition reflects the latest statutory changes, including those introduced by Notification No. 23/2025 and all relevant ICAI guidelines. The work provides in-depth, clause-wise guidance on every facet of Form No. 3CD, with particular emphasis on the most recent compliance thresholds, documentation protocols, and evolving audit standards. Each chapter distils complex statutory mandates into actionable checklists, compliance steps, illustrative examples, and practical FAQs.
This book is intended for the following audience:
Chartered Accountants & Tax Professionals – Seeking authoritative commentary, reporting protocols, and practical guidance on all clauses of the tax audit report
Business Owners & Finance Executives – Wanting to ensure statutory compliance under Section 44AB and clarity on new turnover/investment thresholds
Legal Practitioners & Advisors – Requiring up-to-date legal references, case law insights, and ICAI’s perspectives for litigation or advisory
Students & Academics – Looking for an exam-ready, practical handbook with comprehensive coverage of tax audit procedures and reporting
The Present Publication is the 18th Edition | 2025, amended upto 25th July 2025. This book is authored by CA. Srinivasan Anand G., with the following noteworthy features:
[Complete Coverage of Form No. 3CD] Every clause is dissected with clear explanations of statutory mandates, reporting requirements, supporting documents, and cross-linkages
[Updated for Latest Amendments] Incorporates all changes brought by Notification No. 23/2025, including the revised audit thresholds and ICAI’s latest guidance
[Structured, Clause-wise Analysis] Each clause details what must be reported, what is excluded, the auditor’s role, and the supporting documentation and MRLs (Management Representation Letters) required
[Integrated Checklists & Practical Reckoners] Includes quick-reference ‘Tax Audit Reckoners’ for cash transactions, immovable property, share capital, and loans/deposits, plus tables for inapplicable clauses
[Compliance-focused E-filing Guidance] Step-by-step instructions for populating Form No. 3CD in the e-filing utility, with tips for avoiding common reporting pitfalls
[Interpretational Guidance & FAQs] Addresses ambiguous scenarios, practical dilemmas, and frequently asked questions encountered during tax audits
[Comprehensive References] Links each clause to relevant sections of the Income-tax Act, MSMED Act, ICDS, and TDS/TCS obligations
[Robust Audit Documentation Tools] Highlights model working papers, disclaimers, and qualification templates for sound audit documentation and risk management
[Coverage of Obsolete/Non-Applicable Clauses] Identifies and clarifies clauses rendered redundant for AY 2025–26 (e.g., DDT, excise, and service tax)
The book’s content is methodically organised into 62 chapters, each focusing on a particular aspect or clause of Section 44AB and Form No. 3CD, including:
Section 44AB Framework
Applicability, turnover/profession-linked criteria, exemptions (Chapters 0–5)
Turnover & Gross Receipts
Detailed interpretations, computation, and compliance issues (Chapter 6)
Audit Preparation
Financial statements, and audit forms (3CA, 3CB, 3CD) (Chapters 7–11)
Clause-by-Clause Commentary (Chapters 12–62)
Clauses 1–8A – Assessee details, status, previous year, audit applicability, and new tax regime declarations
Clauses 9–29B – Partnerships, nature of business, books, accounting methods, presumptive income, valuation, inadmissible expenses, property transactions
Clauses 30–44 – Advanced/specialised reporting such as GAAR, transfer pricing, thin capitalisation, high-value cash receipts/payments, TDS, quantitative details, GST expenditure reporting
Tax Audit Reckoners
Instant-reference charts for cash audits, property sales, share capital reporting, and loans/deposits compliance
Tables and guidance for clauses not relevant to certain entities (e.g., cash basis assessees)
Appendices & Special Chapters
Model documents, working paper templates, and explanations for omitted/inapplicable clauses
The structure of the book is as follows:
Introductory Chapters – Statutory framework, definitions, and audit triggers
Core Explanatory Chapters – Turnover/gross receipts computation, audit obligations, preparation of accounts, and audit forms
Clause-by-Clause Analysis – Each clause begins with a summary of requirements, reporting responsibility, statutory links, documentation, checklists, e-filing guidance, disclaimers, and FAQs
Reckoners & Special Audits – Interspersed with concise tables, quick-glance charts, etc.
Appendices & Notable Omissions – Clarifies clauses not in force for AY 2025–26 (e.g., central excise/service tax, DDT)
