ICAI has released the revised 2023 edition of the Guidance Note on Tax Audit under Section 44AB of the Income Tax Act, 1961, incorporating amendments made by the Finance Act, 2023.
ICAI’s Revised Guidance Note on Tax Audit (2023 Edition) u/s 44AB (AY 2023-24)
Tax Audit u/s 44AB of the Income Tax Act, 1961 is mandatory for certain specified assessees based on their gross turnover/ receipts from business/ profession during any financial year. ICAI’s publication ‘Guidance Note on Tax Audit (2022 Edition) u/s 44AB‘ includes detailed commentary (i.e. nature, import, requirements, verifications, disclosures, etc.) on all relevant IT Sections/ Rules governing each and every clause in Form 3CD.
The legal framework has bestowed a substantial duty upon practicing chartered accountants to carry out tax audits under Section 44AB. The compilation of relevant information, execution of the audit, and issuance of the audit report necessitates coordinated efforts by auditors and other stakeholders. To fulfill this need, the Direct Taxes Committee (DTC) of the Institute of Chartered Accountants of India (ICAI) has published this revised 2023 edition of the comprehensive Tax Audit Guidance Note.
As legislation and reporting requirements continue to evolve, this Guidance Note is now revised every year and kept up-to-date to accurately reflect current practices and standards. DTC of ICAI has decided to issue revised and updated version of the Tax Audit Guidance Note at annual intervals, to specifically offer guidance for each assessment year, e.g. Tax Audit for AY 2023-24 in the instant case.
The CBDT has postponed the execution of Clauses 30C (GAAR) and 44 (GST) in the updated Form 3CD until March 31, 2022. This decision came about due to requests from interested parties such as the ICAI among others.
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