61A. Audit

The Collector may lay down criteria for selection of any person for an audit of a person’s income tax affairs.

The Collector shall select a person for audit in accordance with such criteria laid down under subsection (1).

The Collector shall keep the criteria laid down under subsection (1) confidential.

In addition to the selection criteria referred to in subsection (2), the Collector may also select a person for an audit of that person’s income tax affairs having regard to —

After the selection of a person for audit, the Collector shall conduct an audit of the income tax affairs (including examination of accounts and records, enquiry into expenditure, assets and liabilities) of that person.

After completion of the audit, the Collector may if he considers it necessary, after seeking the person’s explanation on all the issues raised in the audit, make additional assessment under section 62.

The fact that a person has been audited in a year shall not preclude that person from being audited again in the next and following years where there are reasonable grounds for such audits.