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Provision for income tax.

Provision for income tax.

Provision for income tax.

Sheetal Feb. 28, 2018

(i) Obtain the computation of income prepared by the auditee and verify whether it is asper the Income-tax Act, 1961 and Rules made thereunder.

(ii) Review adjustments, expenses, disallowed special rebates, etc. with particularreference to the last available completed assessment.

(iii) Examine relevant records and documents pertaining to advance tax, self assessment tax and other demands.

(iv) Compute tax payable as per the latest applicable rates in the Finance Act.

(v) Ensure that overall provisions on the date of the balance sheet is adequate havingregard to current year provision, advance tax paid, assessment orders, etc.

(vi) Ensure that the requirements of AS 22 on Accounting for Taxes on Income have been

appropriately followed for the period under audit.