Kalsun groupsAudit & taxation
A tax audit determines whether financial records and transactions are correctly recorded and accounted for. This, in turn, ensures that the records reflect the actual income of the taxpayer and that the claims for deductions made are accurate.
The term ‘audit’ refers to a check, review, verification or inspection of a record, transaction, account, etc. A tax audit is the process of verification and inspection of the accounts of a taxpayer to confirm their adherence to the provisions of the Income Tax law.
Section 44AB of the Income Tax Act, 1961 deals with the Audit of the Accounts of a certain category of persons carrying on a business or engaged in a profession.
The class of taxpayers enlisted under this section ought to get their accounts audited by the Chartered Accountant.
The CA will check and verify that these accounts comply with the various provisions of the Income Tax law. To be simpler and precise, the audit required as per section 44AB of the Income Tax Act, 1961 is called Tax Audit.
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