Tax auditor is the person permitted to carry out tax audit specified under section 44AB of the Income Tax Act, 1961, to ensure that the accounts of the taxpayer reflect true and fair picture of income.
What do they do?
Tax auditors play a very vital role in the life of organisation. Their main objective is to compute the taxable income according to the law and to maintain transparency in the financial statements filed by a person with the income tax department.
He/she should have thorough knowledge of accounting and auditing. Sound knowledge of taxation laws and laws governing the business of the client, updated with the recent developments in the laws are some of the pre-requisites to be a tax auditor.
- He/she must be well versed in the fundamental principles and theory of all branches of accounting and auditing
- Should be straightforward, scrupulously honest and tactful
- Should keep all information strictly confidential
How do I get there?
To become a tax auditor, a person has to complete the chartered accountancy course conducted by ICAI. This involves passing relevant examinations and undergoing training as specified under Section 4 of the Chartered Accountants Act, 1949. Further, the member of institute must hold full-time certificate of practice.