Answer

1. F

   Facts

   If accounts are complex, the officer can, with approval, direct a special audit by an accountant nominated by the department. The fee is fixed and paid by the department under the rules.

2. P

   Provisions and law

   • Sec 142(2A), Income-tax Act 1961Special audit of accounts when their nature and complexity require it
   • Sec 142(1) (now Sec 268(1))Officer can call for a return, accounts, documents or information before making an assessment
3. A

   Analysis

   A special audit is ordered only after you are given a chance to be heard, so reply to the show cause explaining why accounts are clear. If it is ordered, cooperate with the nominated accountant and give records on time. The time taken for special audit is generally excluded when counting the assessment time limit. Check the order for the scope and deadline.

4. C

   Conclusion

   1. 1Reply to the proposal for special audit with reasons it is not needed
   2. 2If ordered, read the scope and deadline
   3. 3Prepare books, vouchers and reconciliations for the auditor
   4. 4Review the audit report and comment on it to the officer

The 2025 Act number for special audit is not confirmed in our mapping; cite Sec 142(2A) of the 1961 Act for past years.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.