India 2025 tax audit changes: These changes

These changes , effective from April 1, 2025 , are designed to enhance transparency, streamline tax audit reporting, and ensure stricter compliance with tax laws. Businesses and tax professionals must align their audit procedures with these updates to avoid penalties and ensure smooth compliance. The Central Board of Direct Taxes (CBDT) has notified the Income-tax (Eighth Amendment) Rules, 2025 via Notification No. 23/2025, introducing significant modifications to Form 3CD, the tax audit report required under Section 44AB of the Income-tax Act, 1961. The Government of India has introduced the Income- tax (Eighth Amendment) Rules, 2025 , bringing significant changes to the Income- Tax Rules, 1962. These amendments, effective from April 1, 2025 , impact tax audit reporting under Section 44AB of the Income- tax Act, 1961. Form No.3CD, the role of tax audit is becoming indispensably important year after year. Chartered Accountants are expected to demonstrate not only technical expertise but also sound professional ju. gment in navigating these changes and ensuring full adherence to statutory requirements. Their role is pivotal i.