Tax Audit

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

Determining applicability of Tax Audit provisions
Examination and verification of books of accounts
Preparation and filing of Tax Audit Reports
Reporting under the applicable provisions of the Income-tax Act
Review of tax compliance and supporting documentation
Identification of reporting and compliance gaps
Guidance on maintaining audit-ready records
Timely completion and filing of audit reports