CBDT Instruction No. 2/2024: SOP for Handling Internal Audit Objections: -
Posted on September 18, 2024
The Central Board of Direct Taxes (CBDT) issued Instruction No. 2/2024 to provide a comprehensive Standard Operating Procedure (SOP) for managing internal audit objections. This procedure is essential in a faceless assessment environment, promoting transparency and accountability while ensuring adherence to tax laws. The internal audit framework aims to prevent errors, ensure corrective action, and improve assessment quality. Key aspects include:
- Audit Set-Up: It operates under the supervision of the PCCIT, with a designated team for internal audits.
- Audit Objectives: The scope includes identifying errors or omissions in compliance with the Income Tax Act, 1961.
- Audit Targets: Auditors must complete audits within the financial year, with subsequent rechecking by senior officers.
- Audit Classification: Objections are categorized as Major or Minor based on revenue effect, with different procedural requirements for each.
- Re-Checking: Senior officers must recheck a portion of completed cases to ensure quality control.
- Audit Objection Handling: Clear timelines are defined for the acceptance or rejection of audit objections, and remedial actions must be taken promptly.
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