Accountant & Tax Consultant

How to Prepare Records for a Tax Audit Under Section 44AB

A structured preparation guide covering books, reconciliations, statutory records and supporting information for tax-audit work.

Tax-audit applicability depends on the taxpayer’s facts and the law applicable to the relevant year. Once applicable, organised records help the appointed practising Chartered Accountant complete the audit efficiently.

Finalise the books of account

  • Complete sales, purchase, expense and journal entries
  • Reconcile bank, cash, debtors, creditors and inventory
  • Review fixed assets, depreciation, loans, capital and related-party balances

Reconcile statutory information

  • Match GST turnover and tax information with the books
  • Review TDS deductions, deposits and returns
  • Compile details of statutory payments and outstanding liabilities

Prepare supporting schedules

  • Clause-wise information needed for the applicable audit report
  • Prior-year financial statements, return and audit report
  • Agreements, confirmations and explanations for material items

CA review and filing

The final audit report, opinion, digital signature and UDIN are handled by a practising Chartered Accountant. The taxpayer should review and accept the uploaded report through the prescribed process.

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