Audit of TDS returns

A major portion of the revenue by way of income-tax is recovered through deduction of tax at source. For furnishing the information required under revised clause 27 of Form No.3CD, an in-depth verification of the TDS returns is necessary.

It is suggested that an independent audit provision may be inserted to provide for a comprehensive audit of all the TDS returns filed with the Department. Appropriate forms of audit report can be prescribed to certify about the correctness of the quarterly TDS returns. This will enable the Department to rest be assured about the correctness of the TDS returns filed as well as the remittance of the tax deducted at source to the credit of the
Central Government.

Source- Pre-budget Memorandum 2014 on direct taxes by (Institute of Chartered Accountants of India

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Category : Income Tax (25503)
Type : News (12751)
Tags : Audit (427) ICAI (2196) TDS (922)

0 responses to “ICAI suggests independent and comprehensive audit of all TDS returns”

  1. RiddhiSiddhi says:

    In the era of Computer & Computerization, “THE SMART AUDITOR IS COMPUTER MACHINE ITSELF”.

    It is to be very specifically mentioned here that “Error can be done by any human being whether Accountants, Doctors, Engineers, Architects, Teacher, Politician, Sportsperson or Advocates……”. But Computer Machine with the set of programming do not/can’t make mistakes & errors at all.. Hence human Audit Process must be stopped by engaging Computer System more & more..

  2. MANDEEP SINGH says:

    As per our BJP Government slogan: Minimum Government & Maximum Governance.



    Reason our youth is well conscience & old tradition of reports should be changed. For developing fast we need to eliminate REPORTS, CERTIFICATES & ATTESTATION ETC.

  3. B.S.K.RAO says:

    The court must have had some kind of vision of the professional world converging in the future, for as early as 1964, it set rather interesting ground rules into place for the cross-employment restrictions of Legal and CPA professionals. In Opinion 23 (January 9, 1964), the court was asked: “May a member of the Bar of New Jersey engage in the practice of law in this State simultaneously with the practice of public accounting?” In response, the court’s opinion states:

    “… we find that the dual practices of law and accounting … by lawyers would not violate the Cannons of Professional Ethics. Nor does it appear to us that any other rules of our Supreme Court would be violated by such dual practices.”

    In view of latest SC verdict in the case of Bar Council of India Vs A.K.Balaji about practice of law by only Advocates & also due to above Opinion 23 of Committee on Unauthorised Practice of Law appointed by Supreme Court of New Jersey, only Advocate should conduct such Audit of TDS Returns under Income-Tax Act, 1961

  4. MANDEEP SINGH says:

    Everybody know TDS DEPARTMENT doing very well & there is no need of CA’s certificates. Which are strict hurdle to widen genuine tax base in income tax since 1984. If we mention wrong challan or wrong DDO SERIAL NUMBER or other minor mistakes in tds returns. THESE MINOR MISTAKES EASILY CAUGHT BY COMPUTER and assessee gets notice of demand within 15 days. IT IS VERY CLEAR COMMUTER IS SMART AUDITOR THAN ANY Individual Auditor & here is NO QUESTION OF AUDIT CERTIFICATES FROM CA’s.

    MR. RAJ
    It is necessary to mention here I KNOW NUMBER OF CLIENTS OF Chartered Accountants, who get notice from TDS DEPARTMENT for filling wrong particulars or errors in TDS RETURNS.

  5. Gowtham Chand T says:

    This should be directly linked to the P&L reporting as this will hlep at the assessment stage in future years.

  6. RiddhiSiddhi says:

    (1) Non-Legal Professionals must do that job for which they have been created & not Legal Practice or Legal Audit & Due Diligence which is core area of Practice of Advocates & Lawyers..

    (2) No professional bodies should interfere in the policy decision making process of any Government by making unnecessary representation before any ministry or authority for making voluntary compliance to be done by Citizen of India..

    (3) Already audit u/s 44AB of Income Tax Act is of NO USE at all as per information provided by the CBDT because no VALUE ADDITION has been gained by the Revenue from these so called audits.

  7. Supriya says:

    Absolutely it is very much required, it reduces the burden of assesee as well as of IT dept.

  8. ASHWIN GALA says:


  9. Raj says:

    This is the need of hour. Now a days tds return became a business for many people who does not know anything about Income Tax. Many assesse prepares tds return with the help of those people and the result is lot of notice and correspondence from the Tax authority. So a audit by Chartered Accountant will definitely reduce the burden of assesse and IT department.

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