Income Tax - Internal Audit System-Strengthening the role of Supervisory Authorities
THE slow progress of work relating to settlement of Internal Audit Objections and also quality & coverage of internal audit have been a matter of serious concern. The Public Accounts Committee has also commented adversely on the present state of affairs and directed proper monitoring mechanism for desired improvement.
In order to streamline the system, CBDT has decided to strengthen roles of supervisory authorities.
The Chief Commissioners are required to review the performance of Internal Audit Wing on a monthly basis to monitor the conformity to the Action Plan drawn for audit; Exercise supervision in a manner as to facilitate zero-error assessments.
Specific roles have also been assigned to Commissioners and Additional Commissioners.
Major and Minor Objections : the definition of Major audit objection, for the purposes of internal Audit, is henceforth revised as one where the revenue effect is Rs.2,00,000 or more for the purposes of Corporation Tax and Income Tax. This will apply to all pending objections & reports shall be revised for quarter ending December, 2013. The remaining objections are treated as minor.
CBDT Instruction No. 15/2013; Dated: September 18, 2013