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FinanceIndiaStandard Verified Compliance Template

Free Tax Audit Engagement Letter — Form 26 / AY 2026-27 Template

Free Tax Audit Engagement Letter template for CAs covering Form 3CD (AY 2026-27) and Form 26 (Tax Year 2026-27 onwards). ICAI-aligned format. Pro-grade boilerplate vetted by certified domain experts. Use it as a raw document, or automate it in Glomiq to eliminate manual copy-pasting.

Verified Compliance Document
Vetted by: Ashay Shah
GLOMIQ DRAFT
TAX AUDIT ENGAGEMENT LETTER
Date: [DATE]
To,
[CLIENT_NAME]
[CLIENT_ADDRESS]
PAN: [CLIENT_PAN]
GSTIN (if applicable): [CLIENT_GSTIN]
Dear [CLIENT_NAME / PROPRIETOR_NAME],
We are pleased to confirm our appointment as Tax Auditors for [CLIENT_LEGAL_ENTITY_NAME] for the Financial Year [FINANCIAL_YEAR] (Assessment Year [ASSESSMENT_YEAR]) / Tax Year [TAX_YEAR] on the terms set out below.
1. SCOPE OF ENGAGEMENT
We shall conduct the tax audit as required under [APPLICABLE_SECTION] of the Income Tax Act [APPLICABLE_ACT] and submit the audit report in [APPLICABLE_FORM] (Form 3CD / Form 26) within the prescribed due date.
Our scope includes:
· Verification of books of accounts maintained under the applicable law
· Examination of all clauses as prescribed in [APPLICABLE_FORM]
· Reporting of tax deducted at source under applicable sections
· Preparation and e-filing of [APPLICABLE_FORM] with DSC on the e-filing portal
· Reporting under Clause [CLAUSE_NUMBERS] as specifically applicable to your business / profession
2. CLIENT OBLIGATIONS
You agree to:
· Provide complete and accurate books of accounts, bank statements, vouchers, and other records by [DOCUMENT_SUBMISSION_DATE]
· Furnish a signed management representation letter
· Make available key personnel for clarification as required
· Inform us of all transactions that may have tax implications
3. PROFESSIONAL FEES
Our professional fees for this engagement: ₹[AUDIT_FEES] plus applicable GST at [GST_RATE]%, payable by [PAYMENT_DUE_DATE].
Out-of-pocket expenses will be billed at actuals.
4. CONFIDENTIALITY AND DATA PROTECTION
All information shared with us shall be treated as strictly confidential and shall not be disclosed to any third party except as required by law or professional standards.
In accordance with applicable data protection requirements, your personal and financial data will be processed solely for the purpose of this engagement and will not be used for any other purpose.
5. LIMITATION OF LIABILITY
Our liability in connection with this engagement shall be limited to the professional fees paid for this specific engagement.
6. GOVERNING LAW
This engagement is governed by the laws of India and subject to the jurisdiction of [CITY] courts.
Please sign and return a copy to confirm your acceptance of these terms.
Yours faithfully,
[CA_NAME], [MEMBERSHIP_NO.]
[FIRM_NAME]
[FIRM_ADDRESS]
[FIRM_PHONE]
[FIRM_EMAIL]
I / We accept the terms of engagement set out above:
Name: ______________________________
Designation: ______________________________
Date: ______________________________
Signature: ______________________________

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Expert Drafting Guide & Clause Commentary

Compiled by Ashay Shah. Critical checkpoints before finalizing this document.

1Standard Terms and Definitions▼
Clause Context:

Defines the main terms used throughout the document.

Negotiating Tip:

Ensure definitions are consistently used across all sections to avoid conflicting interpretations.

2Governing Law and Jurisdiction▼
Clause Context:

Determines which courts will settle disputes.

Negotiating Tip:

Set the governing law to your local jurisdiction to minimize travel and legal overhead in the event of a dispute.

Compliance Watchouts

  • Review all placeholders carefully before signing.
  • Consult a professional advisor if editing core clauses.
A

Ashay Shah (Founder, Glomiq)

Ashay is the founder of Glomiq. He is passionate about reducing administrative overhead for Indian professionals. Prior to Glomiq, Ashay spent 6 years leading engineering and product teams building automated document infrastructure and SaaS systems.

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