The Income Tax Department has introduced a new directive requiring that all statutory audit reports filed under the Income Tax Act and Companies Act must now include a validated TAN (Tax Dedication and Collection Account Number) section. This mandate applies to companies, firms, government bodies, and institutions that are subject to tax audit under Section 44AB or any other statutory audit where TDS/TCS compliance is relevant. The inclusion of TAN validation aims to strengthen the accuracy of tax audit disclosures and ensure accountability in the tax deduction and collection process.

Under the new compliance requirement, auditors must verify the TAN of the auditee through official channels such as the NSDL e-Gov portal or TRACES, and confirm that the TAN is active, valid, and correctly mapped to the auditee’s name and PAN. The audit report must also mention the period of TAN usage, status of TDS return filings, and any defaults or penalties incurred during the financial year. The department emphasizes that missing or incorrect TAN data in audit reports may render the submission incomplete or defective, triggering follow-up scrutiny or reassessment.

This regulation is part of a broader initiative to integrate tax data validation directly into audit procedures, thereby reducing discrepancies between audit findings and departmental records. Chartered Accountants and audit firms are advised to update their internal checklists and digital audit tools to accommodate this new requirement. The move reflects the government’s push toward a more data-driven and synchronized compliance framework, ensuring that financial reporting aligns seamlessly with tax responsibilities across the board.