Important ICAI Advisory to Members regarding Approval of TAX AUDIT REPORT

Members are requested to advise their clients to timely approve the tax audit reports under their digital signatures for the AY 2017-18 uploaded by them on the e-filing portal The Department of Income-tax (Systems) has informed ICAI that a large number of tax audit reports have been uploaded by the members but the same have not been approved by the assessees under their digital signatures. The Department is already issuing SMS reminders to taxpayers.  As you are kindly aware that if any person fails to get his accounts audited in respect of any previous year or years relevant to an assessment year or furnish a report of such audit as required under section 44AB, then the Assessing Officer may impose penalty on such person as per the provisions of section 271B of the Income-tax Act, 1961.  Tax audit reports will stand unfurnished as on 31st October, 2017 and may result in initiation of penalty if not digitally approved by the assessee.  Members are accordingly requested to kindly advise their clients to timely digitally approve the reports to avoid such proceedings. Your proactive assistance will facilitate the assessee.  Warm Regards, Chairman,  Direct Taxes Committee The Institute of Chartered Accountants of India