CAG, CBDT sign MoU to strengthen audit cooperation and tax administration
Published on 24/09/2025 05:44 PM
The Comptroller and Auditor General of India (CAG) on Tuesday, September 23, signed a Memorandum of Understanding (MoU) with the Central Board of Direct Taxes (CBDT) to strengthen cooperation in audit practices, training, and technology-driven governance. The agreement was signed in New Delhi by CBDT Chairman Ravi Agrawal and Deputy CAG (Commercial & CRA) A M Bajaj, in the presence of CAG K Sanjay Murthy, reported by ANI.
The MoU lays out a framework for joint initiatives in data analytics, remote audits and the use of Artificial Intelligence and Machine Learning in tax audits. Murthy said the pact would enhance transparency, strengthen systems and help both institutions adapt to a changing regulatory environment.
Officials said the two organisations will hold training workshops and seminars to build capacity among revenue auditors with a focus on data-driven audits, particularly in Goods and Services Tax (GST).
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Murthy emphasised the need to equip officials with updated knowledge of rules and procedures under the simplified Income Tax regime, set to take effect in 2025. He added that CAG expertise in procurement systems and internal controls could support CBDT in improving operational efficiency.
Agrawal said the agreement would also benefit the Income Tax Department by providing access to the CAG's training infrastructure. He noted that the shift from the Income Tax Act, 1961 to the new regime in 2025 marks a transition from an intrusive approach to a more prudent and non-intrusive system of tax administration.
CAG K Sanjay Murthy said the partnership would help improve financial oversight and support regulatory changes based on audit insights. He added that by combining expertise, both institutions could raise professional standards. Officials noted that the collaboration will also focus on training in new technologies, keeping pace with the government’s push for transparency and efficiency.
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