A Tax Audit is a statutory examination of the books of accounts of eligible
businesses and professionals under Section 63 of the Income-tax Act, 2025
(corresponding to the erstwhile Section 44AB of the Income-tax Act, 1961).
It aims to ensure that financial records are maintained in accordance with the
provisions of the Act and that prescribed particulars are accurately reported
to the Income-tax Department.
Beyond statutory compliance, a Tax Audit helps strengthen financial discipline,
identify potential compliance gaps, and improve the reliability of financial information.
Who is Tax Audit Applicable To?
Tax Audit is applicable to businesses and professionals who satisfy the
prescribed conditions under the Income-tax Act. It is relevant for:
- Proprietorships
- Partnership Firms
- Limited Liability Partnerships (LLPs)
- Private Limited Companies
- Professionals
- Businesses covered under the applicable provisions relating to turnover, gross receipts, or presumptive taxation
Since applicability depends on the facts of each case, a professional
evaluation is recommended to determine whether a Tax Audit is required.
How can Prasath S & Associates help?
We provide comprehensive Tax Audit services with a focus on technical
accuracy, timely compliance, and professional integrity. Our approach
goes beyond preparing the audit report—we assist clients in reviewing
financial records, identifying compliance issues, and ensuring that
statutory reporting requirements are met efficiently.
Our Tax Audit Services Include
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Determining applicability of Tax Audit provisions
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Examination and verification of books of accounts
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Preparation and filing of Tax Audit Reports
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Reporting under the applicable provisions of the Income-tax Act
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Review of tax compliance and supporting documentation
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Identification of reporting and compliance gaps
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Guidance on maintaining audit-ready records
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Timely completion and filing of audit reports