The ICAI’s Exposure Draft on Guidance Note under Section 44AB introduces an evolved framework for tax audits.

• Clarity on presumptive taxation thresholds.
• Mandatory reporting of MSME payments in compliance with the 2025 notification.
• Enhanced integration between Form 3CD and GST data.
• Emphasis on ethical conduct and digital verification through AI-based scrutiny.

These changes require firms to modernize their audit processes and adopt data-driven documentation. For practicing Chartered Accountants, it’s an opportunity to position themselves as compliance partners in India’s new-age financial ecosystem.