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Home / Tax & Compliance / Tax Due Diligence
Last updated: 2 October 2026
Before you invest in, acquire or raise money for a company, it helps to know what tax exposure sits in its past. Expertvuw’s team reviews income tax, GST and TDS records, open proceedings and structuring risks, and reports findings in plain language for decision-makers.
Tax due diligence is a review of a company’s tax history and current compliance to identify exposures that could affect value or deal terms. Buyers and investors use it to negotiate price, indemnities and conditions; companies use it to prepare for a fundraise or sale.
A typical review covers income tax returns and assessments, TDS and TCS compliance, GST registrations, returns and credits, pending notices and litigation, and transactions with related parties. It also checks tax positions tied to the deal itself, such as share valuation, carry-forward of losses after a change in shareholding, and withholding on payments to non-resident sellers.
The review covers periods under both the Income-tax Act, 1961 and the Income-tax Act, 2025 (from 1 April 2026), since exposures often relate to earlier years.
Basis: Income-tax Act, 1961 and Income-tax Act, 2025; CGST Act, 2017; FEMA pricing rules for cross-border deals; standard due diligence practice. Last updated: 27 September 2026.
Past years can be reopened within the statutory time limits, so exposure is checked for those years.
Outstanding demands on the income tax and GST portals are a quick first indicator of risk.
A change in shareholding can affect the right of a closely held company to carry forward losses.
Buyers paying non-resident sellers may need to deduct tax at source.
Input tax credit not backed by supplier filings may be reversed with interest.
Findings are used to agree indemnities, escrow or price adjustments in the deal documents.
Tax exposure in a target is often hidden in routine records.
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Tax due diligence usually works alongside these services.
Legal and secretarial due diligence on companies.
Valuation reports for the transaction.
Readiness reviews before a fundraise.
Review of group transactions and documentation.
Agree areas, years and materiality with you.
Share a checklist and review uploaded documents.
Review income tax, GST and TRACES records with access given.
Identify exposures and estimate their range.
Share a findings report with risk ratings.
Suggest points for indemnities and conditions.
Findings are most useful when they shape the deal documents.
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Share your query and our team will reply during business hours.
It is a structured review of a company’s tax compliance and history to identify exposures before an investment, acquisition or fundraise.
Usually the years that can still be reopened or assessed under the law, often three to five years, depending on the scope agreed.
Yes. GST registrations, returns, input credit and notices are part of the review.
The report sets out findings and risks. Decisions on price and terms remain with the parties and their advisers.
Yes. A company can run a review on itself to fix gaps before investors start their own diligence.
ACS – Director, Expertvuw Management Pvt Ltd
Tax work is handled by Expertvuw’s team. Audits and certifications required by law are issued by independent Chartered Accountants, and representation before tax authorities and tribunals is made by authorised professionals or advocates.