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CA Final · Direct Tax Laws & International Taxation · Tax Audit and Ethical Compliances

Sundaram Exports Ltd has accounts compulsorily audited under the Companies Act. For the tax year it must also satisfy section 63 of the Income-tax Act, 2025. Which statement correctly describes the compliance route under section 63 and Rule 47 of the Income-tax Rules, 2026?

The company can rely on its audit under the other law, provided it is completed before the specified date and that report is furnished along with the accountant's report. Rule 47 requires Part A of Form No. 26 for persons audited under another law.

  1. AIt must get a separate tax audit; the company audit has no relevance
  2. BIt may get accounts audited under the other law before the specified date and furnish that audit report with the accountant's report in the prescribed form, using Part A of Form No. 26Correct
  3. CIt need not furnish any report if the company audit is complete
  4. DIt must use Part B of Form No. 26 because the company is a corporate assessee

Explanation

Section 63(4) treats an audit under another law as sufficient compliance if done before the specified date and its report is furnished with the accountant's report. Rule 47(1)(a) prescribes Part A of Form No. 26 for persons required to get accounts audited under another law. Part B applies to those not covered by such a requirement.

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