What are the Purposes of Income Tax Audits?

• It prevents Tax Evasion and Fraud.
• It has the Compliance with Tax Laws.
• It verifies Tax Deductions and Exemptions.
• It verifies Transactions and Transfer Pricing.
• It ensures Accuracy of Financial Statements.
• It enhances Government Revenue Collection.
• It assesses Business Profitability and Financial Health etc.

What are the Types of Income Tax Audits?

• Tax Audit (Section 44AB)
• Special Audit (Section 142(2A)
• Transfer Pricing Audit (Section 92E)
• Audit for Companies under the Companies Act, 2013
• Audits for Government and Public Sector Undertakings
• Audit under Section 44AD (Presumptive Taxation Scheme)
• Limited Liability Partnership (LLP) and Partnership Firm Audits