Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 182 (Audit.)
clause 1: The Board or any subordinate authority with the approval of the Board may, in the manner prescribed by the Board, select returns for audit from among the returns or amended returns filed under section 180 and forward the same to the Commissioner of Taxes concerned for the purpose of audit.
clause 2: Within not more than 7 (seven) working days from the date of receipt of the list of returns selected for audit, the Commissioner of Taxes shall, by passing such an order, appoint an inquiry team, audit team and audit curator for each audit case and such order shall be sent to all inquiry teams, audit teams, audit curator, and Deputy Commissioner of Taxes concerned on the date of signing such order.
clause 3: The Deputy Commissioner of taxes shall, within not more than 7 (seven) working days of the receipt of the order issued under sub-section
clause 2: , issue one notice to the concerned assessee for the purpose of informing him of the audit and shall send a copy of such notice to the inquiry team concerned.
clause 4: Every inquiry team (a) shall collect information about income, expenses, assets, liabilities, transactions, financial statements and other records, public records of the assessee and information of the parties related to the assessee, etc. by conducting inquiries; (b) shall submit to the Audit Curator an inquiry report verifying and confirming the existence and detailed nature of the source of income of the assessee; (c) within 60 (sixty) days of receipt of the notice sent under sub-section
clause 3: , the inquiry report shall be submitted to the Deputy Commissioner of Taxes concerned and a copy of such report shall be filed with the Audit Curator; and (d) in case of failure to submit the report within the period mentioned in Clause (c), an application for time extension may be submitted to the concerned Deputy Commissioner of Taxes and the Deputy Commissioner of Taxes may extend the time up to a maximum of 60 (sixty) days.
clause 5: After submission of the inquiry report, the audit team shall conduct audit activities following the audit manual and guidelines prepared by the Board, and (a) check compliance with all applicable provisions under this Act and other relevant laws; (b) perform the following functions through field inspection, namely: (i) verification of any claim or any information submitted by the assessee; (ii) collecting and verifying of books of accounts, records of receipts and payments, contracts of sales and purchases and other documents, other evidences, any other information issued or received from clients, customers or suppliers; (iii) obtaining an understanding of the accounting and management information systems employed by the assessee; (iv) collecting other relevant evidence, of whatever nature or type; (c) examine any statement or record relating to income, expenditure, assets or liabilities; (d) verify the nature and authenticity of transactions; (e) re-verify the inquiry report filed under sub-section
clause 4: ; (f) interview any person who is or may be related to the assessee; (g) direct the assessee to submit a written statement of any facts and figures; (h) collect and analyse relevant aggregate data, market data, financial data and assessee lifestyle data as applicable.
clause 6: The audit team shall send the draft audit report to the assessee and take written explanation from him.
clause 7: The audit team shall submit the audit report to the Audit Curator within a period not exceeding 300 (three hundred) days from the date of submission of the inquiry report under sub-section
clause 4: and the report shall include the following matters (a) a statement regarding verification and confirmation of the source of income, assets and liabilities of the assessee and their detailed nature, including the report of the audit team; (b) a statement of compliance with all applicable provisions of this Act; (c) the areas of improvement in compliance with the provisions of the Act and, where applicable, comments on the assessees internal control.
clause 8: Audit Curator, within not more than 7 (seven) working days of the submission of the report by the audit team (a) recommend to the Commissioner of Taxes for completion of the audit proceedings after being satisfied with the following matters, namely: (i) compliance with this Act and all the facts relating to the income, expenditure and assets of the assessee as per the audit report received are properly shown in the return of the assessee or revised return; and (ii) there is no possibility of any additional tax claim from the assessee; (b) Authorize the Deputy Commissioner of Taxes to complete the audit if it appears from the audit report received that (i) compliance with this Act and all information relating to the income, expenditure and assets of the assessee as per the audit report received is not properly reflected in the assessee's return or revised return; or (ii) any other proceedings should be taken against the assessee.
clause 9: The Commissioner of Taxes, on receipt of the recommendation from the Audit Curator, shall consider the case and render an appropriate decision not more than 7 (seven) working days from the date of receipt of such recommendation.
clause 10: Within not more than 7 (seven) working days after receipt of approval from the Audit Curator, the Deputy Commissioner of Taxes, (a) shall send the audit report to the assessee and issue a notice directing the assessee to file one revised return reflecting the findings of the audit, and to pay the tax and other applicable amount, determined on the basis of revised return on or before the date of filing of such revised return; and (b) conduct any other proceedings as directed by the Audit Curator.
clause 11: Where the revised return has been filed by the assessee and the Deputy Commissioner of Taxes is satisfied that the findings mentioned in the audit report has been duly reflected in the revised return and that the tax and other applicable amounts have been fully paid in accordance with the provisions of sub-section
clause 10: , he shall accept the revised return filed and issue a letter of disposal of audit to the assessee.
clause 12: Where, after notice under sub-section
clause 10: , no revised return has been filed or the revised return which has been filed does not reflect the findings of the audit, or tax or other applicable amount has not been paid in compliance with the provisions of sub-section
clause 10: , the Deputy Commissioner of Taxes may assess the tax under section 183 or 184, whichever is applicable.
clause 13: No tax shall be assessed under sub-section
clause 12: unless (a) the investigation and audit phase ends; (b) the assessee is notified of the audit report; and (c) the assessee fails to file the revised return in compliance with the notice sent under sub-section
clause 10: ; or the assessee files the revised return in compliance with the notice sent under sub-section
clause 10: but fails to properly reflect the findings of the audit and fails to pay the tax and other applicable amount as per the findings of the audit. 1[
clause 14: A return or revised return filed under section 180 for any assessment year showing total income at least 15% (fifteen percent) higher than the total income in the immediately preceding assessment year shall not be selected for audit except in the following cases, namely: (a) any return or revised return of any bank, insurance or finance company; (b) any return or revised return which is not accompanied by a bank statement in support of aggregate of any type of loans received in the relevant year exceeding Taka 5 (five) lakh from any source other than bank or finance company. (c) any return or revised return showing fully or partially tax exempted income; (d) any return or revised return showing income subject to reduced tax rate; 1 Sub-section
clause 14: was substituted by section 68(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. (e) any return or revised return claiming or resulting in tax refund; (f) if an assesse (i) who fails to submit necessary documents in support of compliance of the provisions of Part 7 in the relevant year; (ii) who is subject to selection for audit under clause (b) of sub- section
clause 3: of section 176 owing to failure of complying fully the notice issued in accordance with sub-section
clause 2: of section 176; or (iii) who fails to file return under section 177.]
clause 15: For the purpose of audit under this section, (a) the Commissioner of Taxes shall constitute teams, as follows (i) formation of any number of audit teams and each audit team shall consist of not less than 2 (two) auditors; (ii) formation of any number of investigation teams and each investigation team shall consist of not less than 2 (two) tax inspectors; (b) audit team and investigation team appointed for any assessee shall not include the Deputy commissioner of Taxes and Inspector of Taxes, under whose jurisdiction the assessee is registered. (c) an audit team may, as necessary or as it deems appropriate, get assistance from experts or professional estimators; (d) the return shall not be selected under sub-section
clause 1: before the completion of 60 (sixty) days from the filing of the return; 1[(e) the return shall be selected or approved for audit under sub-section
clause 1: within a period not exceeding 2 (two) assessment years from the end of the assessment year in which such return has been filed;] (f) all reports prepared and filed under this section shall be signed by all members of the team; (g) in computing "gross income exceeding 15% (fifteen per cent)", only those sources of income appearing in the return filed under section 180 which also existed in the immediately preceding assessment year shall be taken into account; 1 Clause (e) was substituted by section 68(b) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.(h) Auditor shall be selected from among the income-tax authorities who is Deputy Commissioner of Taxes and not below the rank of Assistant Commissioner of Taxes; (i) Audit Curator, (i) shall be selected by the Commissioner of Taxes from among the Additional Commissioners of Taxes or Joint Commissioners under him; and (ii) shall be the key person for the management of the audit activities including the settlement of the audit cases selected under this section, the preparation of the audit schedule, the preparation of the audit plan; and (iii) shall be liable to the Commissioner of Taxes for all intents and purposes of this section.