The Institute of Chartered Accountants of India (ICAI) has announced a significant, temporary compliance relaxation for non-corporate entities and Limited Liability Partnerships (LLPs) for the Financial Year 2024-25. This allows these entities to optionally adopt updated guidance notes on financial statements, aiming to reduce administrative burden while maintaining transparency and accuracy. This flexibility ensures that core accounting standards remain paramount, offering businesses a choice in their reporting approach for the upcoming fiscal year.

This guide explains the updated Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961, for the Assessment Year 2025-26 (Financial Year 2024-25). It clarifies who needs a tax audit, points out key changes in Form 3CD, including new clauses for digital transactions, MSME reporting, and buybacks. It also outlines the audit process, lists important due dates, and details the penalties for non-compliance. The guide offers best practices for taxpayers to help ensure smooth audits and strong tax compliance in India.