Income Tax Audit

Objectives of tax audit
Tax audit is conducted to achieve the following objectives:

Ensure proper maintenance and correctness of books of accounts and certification of the same by a tax auditor Reporting observations/discrepancies noted by tax auditor after a methodical examination of the books of account To report prescribed information such as tax depreciation, compliance of various provisions of income tax law etc.

All these enable tax authorities in verifying the correctness of income tax returns filed by the taxpayer. Calculation and verification of total income, claim for deductions etc. also becomes easier.