The objectives of Tax Audit are as follows:
- A proper system of tax audit would ensure that all the businesses maintain the books of accounts and all other revenue/expense records properly.
- A proper tax audit would also ensure that the total income and the claims for deduction are correctly and accurately entered by the businessmen.
- Tax audit restricts the chance of fraudulent practices.
- Tax audit facilitates the administration of tax laws by proper presentation of accounts before tax authorities and save the time of assessing officers engaged in carrying out routine verifications.