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CS Professional · Advanced Direct Tax Laws and Practice · Tax Audit

Meera Traders has accounts audited under another law. Under section 63(4) of the Income-tax Act, 2025, what must it do to be treated as complying with the tax audit requirement?

Meera Traders must get its accounts audited under the other law before the specified date and furnish by that date the other audit report together with the accountant's report in the prescribed form. A separate second audit is not needed.

  1. AGet the accounts audited under that law before the specified date and furnish by that date the audit report along with the accountant's report in the prescribed formCorrect
  2. BGet a separate second audit done under section 63 in addition to the other audit
  3. CFurnish only the other law's audit report, with no accountant's report in the prescribed form
  4. DGet the accounts audited within three months after the return due date

Explanation

Section 63(4) treats an audit under another law as sufficient compliance if the audit is completed before the specified date and its report is furnished by that date along with the accountant's report in the prescribed form. Furnishing only the other report omits the second requirement, so it is wrong.

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