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

Under the Income-tax Act, 2025, Mr. Rao, a business owner, has accounts that are required to be audited under another law. Which course satisfies the tax audit requirement?

He is treated as compliant if he gets the accounts audited under the other law before the specified date and furnishes that audit report, together with the accountant's report in the prescribed form, by that specified date. No duplicate audit is required, but the accountant's report must still be furnished.

  1. AHe must get a separate tax audit done in addition, with no relief
  2. BHe is exempt from furnishing any report if the other-law audit is complete
  3. CHe gets accounts audited under that law before the specified date and furnishes that audit report along with the accountant's report in the prescribed form by that dateCorrect
  4. DHe furnishes only the other-law audit report with the return of income after the specified date

Explanation

Section 63(4) treats compliance as sufficient if the accounts are audited under the other law before the specified date and that report is furnished by that date along with the accountant's report in the prescribed form. A separate duplicate audit is not needed, and the other-law report alone is not enough.

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