ICAI’s New Tax Audit Guidelines for 2023-24: What You Need to Know
Introduction: ICAI (Institute of Chartered Accountants of India) has recently released its updated guidance for tax audits under Section 44AB of the Income Tax Act, 1961. This guide covers the changes introduced by the Finance Act of 2023.
Why It Matters: Tax Audit under Section 44AB is mandatory for specific individuals and businesses, depending on their annual turnover. ICAI’s “Guidance Note on Tax Audit (2022 Edition) under Section 44AB” offers comprehensive insights into the various aspects of tax audits, including their nature, requirements, verifications, and disclosures.
ICAI’s Role: Chartered accountants play a vital role in conducting tax audits under Section 44AB. This involves gathering relevant information, conducting the audit, and issuing the audit report. To assist auditors and other stakeholders in fulfilling these responsibilities, ICAI’s Direct Taxes Committee (DTC) has released the revised 2023 edition of the Tax Audit Guidance Note.
Annual Updates: Given the continuous changes in legislation and reporting requirements, ICAI revises this guidance note annually. This ensures that it remains current and aligns with the latest practices and standards. The DTC of ICAI releases updated versions to provide guidance for specific assessment years, such as the Tax Audit for AY 2023-24.
Important Note on Clauses 30C (GAAR) and 44 (GST): The Central Board of Direct Taxes (CBDT) has decided to delay the implementation of Clauses 30C (General Anti-Avoidance Rules – GAAR) and 44 (Goods and Services Tax – GST) in the revised Form 3CD until March 31, 2022. This decision was made in response to requests from various interested parties, including ICAI.
Download/View the ICAI’s guidance note from the below link: