Tax Health Check –
Direct Tax Review, GST Compliance Check, TDS Compliance Review & Tax Risk Assessment
A tax health check is a proactive diagnostic review of every tax position — income tax, GST, TDS, and transfer pricing together. It surfaces hidden defaults, recovers missed credits and refunds, and delivers a tax risk assessment report with remediation steps before the assessing officer ever arrives.
Overview
What Is a Tax Health Check and Why It Matters
A tax health check is a structured, top-to-bottom review of the business's tax position. It covers filings, positions taken, pending disputes, and recovery opportunities — generating a tax risk assessment report with clear remediation steps. Most tax issues hide in daily operations rather than annual returns, with TDS defaults, ITC mismatches, and wrong section classifications accumulating silently until an Income Tax Notice arrives.
Beyond risk mitigation, the tax compliance review often recovers real money — missed ITC, unclaimed TDS refunds, expired credits, and under-claimed deductions add up quickly. Therefore, every tax health check typically pays for itself through recoveries alone, well before the risk-reduction benefits are counted.
N D Savla & Associates performs structured tax health check engagements for Indian businesses, startups, and multinational groups — covering direct tax review, GST compliance check, TDS compliance review, and international transactions. Our service connects with our Income Tax E-Filing, TDS Return Filing, GST Return Filing, and TDS & Tax Liability services.
Scope at a Glance
Triggers & Timing
When Should You Conduct a Tax Health Check?
Several moments naturally call for a tax health check. Some are scheduled — annual reviews before the ITR or GSTR-9 filing. Others are event-driven — notices, transactions, or audits. Understanding both categories helps the business plan the engagement at the right moment.
Annual Review, Ideally in August or September
Every business benefits from an annual tax compliance review, timed before the ITR and GSTR-9 filing cycle. August–September is the ideal window — it gives time to address findings before the filing deadlines. Growing businesses often run focused quarterly reviews on high-risk areas such as GSTR-2B matching or TRACES defaults between the annual cycle.
Notices, Audits, M&A and Restructuring
Specific events trigger interim reviews — a new income tax or GST notice, an upcoming statutory audit or departmental scrutiny, an acquisition or business restructuring, or material changes in business model. Each of these introduces new tax exposure that an annual review alone will not catch — therefore, event-driven health checks complement the annual cadence.
Scope Architecture
The Four Review Layers of a Tax Health Check
Every tax health check is organised around four review layers — direct tax, GST, TDS, and specialised reviews covering transfer pricing and SDT. The layers run in parallel, each with its own tests and recovery opportunities. Together they deliver a complete tax risk assessment.
The Four Review Layers — Direct Tax, GST, TDS & Specialised
Direct Tax Review: Last three ITRs and computations re-verified head by head — regime selection, depreciation, set-off positions, Chapter VI-A deductions. Form 26AS reconciliation against ITR, AIS cross-check, advance tax adequacy, and Section 234B/234C interest exposure. Often surfaces unclaimed TDS refunds and under-claimed deductions.
GST Compliance Check: GSTR-1, GSTR-3B, and GSTR-9 of the last two years reviewed — outward supplies, tax payments, ITC claims, late-fee and interest exposure. GSTR-2B matching against books every month, blocked-credit screening under Section 17(5), and vendor follow-up for short-filed invoices.
TDS Compliance Review: Form 24Q and Form 26Q of the last three years verified — incorrect PANs, wrong sections, missed challans, and deductees who should have received a Lower TDS Certificate. TRACES default summary pulled and analysed for short-deductions, short-payments, and Section 234E late fees.
Specialised Reviews: Form 3CEB and international transactions tested against Section 92B and arm's length methodology. For domestic groups with tax-holiday units, Specified Domestic Transactions reviewed against Section 92BA. Exposure closed before the next TPO reference or departmental audit.
Integrated outcome: The four layers feed into a single findings report with risk-rated recommendations — letting the business prioritise remediation by exposure amount, not by tax domain. Our International Transfer Pricing and Transfer Pricing Study Report teams support the specialised layer where applicable.
Detailed Scope Checklist Per Layer
ITR Positions, Form 26AS Reconciliation & Advance Tax Analysis
Last three ITRs re-verified head by head, regime comparison re-run, depreciation and set-off positions tested. Form 26AS reconciliation with AIS matching to prevent TDS and tax liability mismatches. Advance tax adequacy computed with Section 234B and 234C interest exposure. Pending scrutiny assessment or notice proceedings catalogued and responded to.
Returns, ITC Reconciliation & GSTR-2B Matching
GSTR-1, GSTR-3B, and GSTR-9 of two years matched on outward supplies, tax payments, and ITC claims. Blocked-credit items flagged under Section 17(5). Monthly GSTR-2B matching against books identifies invoices missing where vendors short-filed — often the single highest-impact recovery activity in the engagement.
Form 24Q/26Q Review & TRACES Default Resolution
Form 24Q salary filings matched against payroll records; Form 26Q against non-salary payments in the books. Incorrect PANs, wrong sections, and missed challans corrected through revised returns. TRACES default summary analysed for short-deductions and late-filing fees. Deductees who should have held a Lower Tax Deduction Certificate flagged for future transactions.
Transfer Pricing, Form 3CEB & Specified Domestic Transactions
Form 3CEB and underlying international transactions verified against Section 92B. Arm's length methodology reviewed, and a fresh Transfer Pricing Study Report recommended where thresholds or material changes trigger it. For domestic groups with tax-holiday units, Specified Domestic Transactions tested against Section 92BA — since SDT non-compliance attracts the same penalties as international TP.
Engagement Deliverables
What You Receive at the End of a Tax Health Check
Every tax health check closes with a structured deliverables package. The business walks away with clear, actionable outputs — not just a diagnostic report. Three distinct deliverables make up the package, each designed to drive a different management action.
Findings Report with Risk Ratings
Every issue identified during the review, each carrying a risk rating — high, medium, or low. The report cites the exposure amount, legal basis, and the specific filing or transaction triggering each finding. Ready for board reporting and audit committee discussion.
Exposure Quantification
For every finding, the quantified financial exposure — interest under Section 234B/234C/201(1A), late fees under Section 234E, penalty ranges under Section 271H, and potential ITC reversal amounts. Lets management prioritise action by rupee impact, not just severity.
Remediation Roadmap with Owners
Each finding translated into specific next steps — owner, target date, and sequencing by priority and deadline. For retained clients we revisit the roadmap quarterly, ensuring the tax health check delivers ongoing value rather than a one-time report.
Our Services
Our Tax Health Check Services at N D Savla & Associates
End-to-end tax health check engagements — direct tax review, GST compliance check, TDS compliance review, and transfer pricing exposure assessment — for startups, mid-market companies, listed entities, and multinational subsidiaries. We deliver the complete findings report, risk ratings, and remediation roadmap.
Direct Tax Review — ITR, Form 26AS Reconciliation & Advance Tax
GST Compliance Check — Returns, ITC & GSTR-2B Matching
TDS Compliance Review — Form 24Q, 26Q & TRACES Defaults
Specialised Reviews + Findings Report & Remediation Roadmap
Complete Tax Health Check Services — Direct Tax Review, GST Compliance Check, TDS Compliance Review & Remediation.
Direct tax review, GST compliance check, TDS compliance review, Form 26AS reconciliation, GSTR-2B matching, transfer pricing exposure review, findings report with risk ratings, and remediation roadmap — for startups, mid-market companies, listed entities, and multinational subsidiaries.
+91 98190 00511 | +91 91670 58000 | +91 98190 00445 | nainitsavla@savlagroup.in
Contact UsF.A.Q.
A tax health check is a proactive diagnostic review of every tax position of the business. Specifically, it covers direct tax review, GST compliance check, TDS compliance review, and transfer pricing exposure. Additionally, it generates a tax risk assessment report with risk ratings and remediation steps. Furthermore, a tax health check often recovers missed deductions and unclaimed credits. Therefore, it pays for itself in most engagements.
Most businesses benefit from an annual tax compliance review. Specifically, we recommend running it in August or September each year. Additionally, specific events trigger interim reviews — notices, acquisitions, restructuring, or statutory audits. Furthermore, growing businesses often run focused quarterly reviews on high-risk areas. Therefore, the tax health check cadence depends on business complexity and risk appetite.
A direct tax review covers every income tax position of the business. Specifically, it checks the last three ITRs, computations, and deductions. Additionally, it includes Form 26AS reconciliation and AIS matching. Furthermore, it verifies advance tax, TDS credits, and refund claims. Moreover, our Income Tax Audit team integrates direct tax review with statutory audit planning.
A GST compliance check is a proactive diagnostic review by the taxpayer’s consultant. Specifically, it identifies gaps before any department audit. By contrast, a GST Audit may be statutory or departmental. Additionally, the GST compliance check covers GSTR-2B matching, ITC reconciliation, and blocked-credit review. Furthermore, both engagements are complementary — not substitutes.
Form 26AS reconciliation matches TDS credits in Form 26AS against the ITR claims. Specifically, we match every deductor’s entry against the books. Additionally, any mismatch triggers a Section 143(1)(a) adjustment notice. Furthermore, Form 26AS reconciliation prevents lost refunds and demand creation. Therefore, every tax health check treats Form 26AS reconciliation as non-negotiable.
Yes. The TDS compliance review pulls the complete TRACES default summary. Specifically, we analyse every short-deduction, short-payment, and late-filing fee. Additionally, we draft corrected Form 24Q and Form 26Q filings to close defaults. Furthermore, we compute Section 234E late fee exposure and Section 201(1A) interest. Therefore, TDS compliance review removes TRACES defaults end-to-end.
Every tax health check closes with a structured deliverables package. Specifically, this includes a findings report, risk ratings, and a remediation roadmap. Additionally, we provide exposure amounts and legal basis for each finding. Furthermore, the remediation roadmap carries owners and target dates. Moreover, the full tax risk assessment supports board reporting and audit committee discussions.
