Points to be considered while doing Tax Audit in Tally Software



Quick Summary
When conducting a tax audit using Tally software, several key checks can help ensure accuracy and compliance. You can easily identify negative cash balances, large cash payments exceeding £10,000, and transactions related to Sections 269SS and 269T by following specific navigation paths within the software. Additionally, Tally can help detect negative stock balances if inventory is managed, and identify misplaced entries like loans shown as assets.

Nowadays books of accounts are mostly maintained via software rather than traditional manual accounting system which helps the accountants to prepare and reduce the arithmetical errors in books of accountants and it also helps the auditors to verify the books of accountants at ease.

Among the softwares that are used for the preparation of books of accounts, Tally Software is widely used. So, while doing Tax Audit in Tally Software, the following points can be considered.

1. We can check negative cash balance if any by following these steps

By pressing - D A C  then opening cash book and pressing F12  then under that Show High/Low Details  - Yes -  in this we can get the lowest cash balance in the bottom right end, where we can show the lowest cash balance and on what date it was least. If the amount shown there is showing Cr then it is negative else it is positive.

Tax Audit in Tally: Key Checks and Tips

2. We can check the more than 10,000 cash payments if any by following these steps

By pressing - D A C  then opening cash book and then opening any month and thereby selecting the entire period by pressing Alt + F2  and after that Alt + F12   has to be pressed to select the range. In that we can write this condition - Voucher having Ledger Amount greater than 10001 - By doing this we can get a list of transaction which has cash payments exceeds 10000.

 

3. We can check 269SS and 269T transactions if any by following these steps

By opening the Balance sheet and there under loans and then under that pressing F12 under that keeping Show Opening Balances and Show Transactions as Yes. In this, we can find loans accepted and paid during the year

4. We can find any negative stock balance in stock statements if inventory is maintained by the following steps

By opening Stock Summary and there under opening required stock and pressing F12  and there under pressing Show high/low details - by this we can find any negative stock during the year

5. We can find some mistakes like - showing loans received under Loans and Advances(Asset) so that while verifying the books of accounts we may miss that in reporting 269SS and 269T - we can identify those by clicking D X - which opens Exception reports. In this we can find those by opening Negative Ledgers through which we can find those kinds of ledgers.

 

6. We can verify addition to Fixed Assets by opening the Balance Sheet and Fixed Assets there under and click F12 and under that we can mark Show Opening Balances and Transactions as Yes by which we can find any additions to the Fixed Assets.


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CA in Practice, CMA by Qualification

Chartered Accountant, |CMA (AIR - 13(FINAL) 35(INTER) | CS | DISA(ICAI) | FAFD(ICAI) | AI-LEVEL 1(ICAI) | M.COM(FT)

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