This document outlines an audit programme for a tax audit. It lists the objectives of the audit as assisting the income tax department to assess the correct income of the assessee and ensure compliance with tax law. It provides a checklist of permanent files and relevant documents to verify, including books of accounts, reserves, income/expenses, depreciation details, capital/personal expenditures, penalties, payments to residents/non-residents, and other disallowed amounts. The verification aims to compare accounts to prior years and ensure expenses are allowable under tax law.

1. TAX AUDIT
PROGRAMME

2. AUDIT PROGRAMME
Name of concern- : -----------------
Financial Year- : -----------------
Assessment Year- : ------------------
Person to whom the audit assigned- : ------------

3. OBJECTIVE
• To assist Income tax department to assess
correct income of assessee and give
information on compliance prescribed under
the act.

4. Document and checklist
• Permanent File
 PAN
 TAN
 Registered office
 Branch office details
 Other taxes registration no`s
 And other supporting documents
 MOA,AOA

5. Relevant Documents to be checked
• In the case of company
 MOA
 AOA
 Minutes of the meetings conducted by the BOD
 Directors report
 Previous year ROI
 Accounting policies and procedures
 Documents filed with ROC
• In the case of firm
 True copy of partnership deed signed by all the parners

6. Verification of books of accounts
• Items falling within scope of sec.28-
 Verify the reserve a/c any other a/c, capital account of
proprietor/partners, credits in the other balance sheet
items to identify if any item is directly credited to the
same.
• Income and Expenses heads should be checked
for comparing with the previous year accounting
method
• Check the year and entries in journal for the
expenses provided and see the method of
providing expenses is as same as of earlier year

7. Verification of books of accounts
• Particulars of depreciation as per income tax
act, 1961 for each block of assets in following
terms-
 Block of assets
 Rate of depreciation
 Actual cost/WDV
 Addition
 Depreciation allowable
 WDV at end of PY

8. Verification of books of accounts
• Amount debited to profit/loss account-
 Capital expenditure
 Personal expenditure
 Penalty or fine for violation of any law
 Any other penalty or fine
 Amount admissible u/s 40(a)
 As payment to non resident referred to sub clause(i)
 As payment to resident referred to sub clause(ia)

9. Verification of books of accounts
• Amount debited P&L account-
 Amount inadmissible u/s40(b)/(40ba)paid by way
of interest, salary, bonus, commission or
remuneration
 Provision of gratuity not allowed u/c40A(7)
 Any sum paid as employer not allowable u/s
40A(9)