Tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2015 Dear All,

Can statutory auditor be appointed as Tax Auditor? Is there any requirement to pass a Board Resolution for such appointment.

Please provide your valuable comments at the earlies.

Thanks & Regards,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 November 2015 Statutory auditor can be appointed as tax auditor. Yes Board resolution is required.

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2015 Dear Sir,

Thanks for your reply.
Further can you please provide some reference in this regards. Like in which section of companies Act it is mentioned.

Thanks

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

26 July 2025 Hey! Here’s a clear answer for you:

1. **Can a statutory auditor be appointed as tax auditor?**

* Yes, a **statutory auditor can also be appointed as the tax auditor** under the Income Tax Act, 1961.

2. **Is Board Resolution required?**

* Yes, a **Board Resolution is required** for the appointment of a tax auditor.

3. **Legal reference:**

* Under **Section 44AB** of the Income Tax Act, 1961, the tax auditor is required to be appointed.
* The Companies Act, 2013 (Section 139(1)) and related rules cover statutory auditor appointment and the process for Board Resolutions, which generally apply to auditor appointments including tax auditors for companies.
* Though the Income Tax Act itself does not explicitly mention the Board Resolution, it is a good corporate governance practice and mandated under the Companies Act for any auditor appointment to be approved by the Board.
* The **CBDT Circular No. 7/2014 dated 23rd April 2014** also clarifies that the statutory auditor can be appointed as tax auditor.

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If you want, I can help you draft a sample Board Resolution for appointing the tax auditor. Just ask!

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