1)Executive Summary

Audit Copilot — FY 2025–26 is a single‑file, offline, multi‑tab audit & compliance workstation tailored for Indian SMEs and audit firms. It ingests CSV exports from Tally/ERP, normalizes fields, and generates actionable insights across MSME 43B(h), TDS/TCS (incl. 194Q), GST (RCM/blocked ITC/180‑day rule/e‑way), Depreciation (Income‑tax WDV with half‑year rule and additional depreciation), Cash compliance (40A(3) & 269ST), Vendor spend (threshold & 194Q alerts), and one‑click exports. The tool works fully offline with local data persistence, making it suitable for audit rooms and field engagements.

Core outcomes

• Detects compliance breaches early (MSME delays, cash-limit violations, RCM, blocked ITC, 194Q thresholds) and auto‑quantifies exposures (e.g., MSME interest, indicative TDS/TCS, disallowances). • Speeds up working‑paper preparation via structured CSV → analytics → exportable schedules (CSV/JSON) and dashboards.

• Reduces manual effort by standardizing mapping, heuristics, and explanations directly inside the UI.

2) Problem Statement

Indian audit teams face fragmented data (diverse ledger formats), evolving regulations (GST 2.0, MSME 43B(h) enforcement, changing TDS/TCS sections), and strict timelines. Manual reconciliation is slow, error‑prone, and non‑repeatable. A lightweight, verifiable, and offline tool is needed to:normalize disparate CSV exports; flag breaches with clear logic trails; and produce audit‑ready schedules without internet reliance.

3) Target Users & Personas

• CA/Audit Managers & Article Assistants

• CFO/Finance Controllers (SME/Mid‑market)

• Internal Audit Teams

4) Data Inputs & Processing

Input: CSV (Day Book, Purchase/Sales, Payment/Receipt, Vendor Masters, Asset Registers) Normalization: Auto‑mapping of common headers (Date, Party, Invoice, PAN/GSTIN, MSME class, Mode, HSN/SAC, Asset Block, put‑to‑use, Sale details) Persistence: local Storage retains state Visualization: Lightweight charts and tabular schedules

5) Functional Modules (Tabs)

· MSME 43B(h) & Interest: Micro=15d, Small=45d; auto‑rate = RBI MSF×3 by effective date; pop‑up per‑invoice calculation; 3CD/43B disallowance ready.

· TDS/TCS (incl. §194Q): Heuristics (purpose/SAC) suggest 194C/J/H/I/194Q/206C(1H); manual per‑row override; §194Q threshold logic; indicative TDS/TCS.

· GST Checklist: RCM (GTA/legal/security/director), blocked ITC (motor‑vehicle & food/catering), e‑way likelihood >₹50k, 180‑day rule.

· Depreciation (WDV): Half‑year rule, additional depreciation options; CSV‑ingest assets; block summary with editable opening WDV and detailed breakdown.

· Cash Compliance: §40A(3)/§269ST parameterized limits; daily aggregates; flags & observations; FY inflow/outflow and income/expense bars.

· Vendor Spend & §194Q: Party‑wise totals/%/counts/flags; sellers >₹50L highlighted for buyer over‑threshold cases.

· Exports & AI Assistant: Export Observations (JSON), All Tables (CSV), State (JSON); offline assistant for quick Q&A/narratives.

6) User Journey

Upload CSV → Analyze → Navigate tabs & toggles → Review flags & per‑row calculators → Export working‑papers.

7) Regulatory Mapping

MSME 43B(h): 15/45‑day windows; interest at 3× RBI bank rate; compute till payment or YE. TDS/TCS: Section inferences & thresholds incl. 194Q and 206C(1H). GST: RCM lists, 17(5) blocked ITC, 180‑day rule, e‑way triggers. Cash: 40A(3) and §269ST checks.Depreciation: Appendix‑I rates, half‑year rule <180d, additional depreciation.

8) Business Value & KPIs

Time‑to‑analysis <15 minutes; coverage ≥90% common SME pain points; reduced rework; clear, explainable calculations improve review confidence.

9) Technical Architecture (Offline‑first)

Single HTML (embedded CSS/JS), local Storage, lightweight charts, no frameworks; smooth for ~5k rows; no network calls; exportable state.

10) Differentiators

Fully offline; explainability‑first (pop‑ups & breakdowns); Indian‑context heuristics; export‑friendly outputs.

11) Limitations & Assumptions

Heuristics need overrides for edge cases; HSN/RCM samples extendable; MSME class depends on vendor tagging.

12) Governance & Validation

Maker–checker review; sampling checks; quarterly refresh of rate tables and lists.

13) Roadmap (Post‑Hackathon)

Expanded RCM/HSN libraries; optional online rate‑table sync; narrative Word/PDF exports; policy.json for firm rules.

14) Sample Scenarios

MSME delay → interest pop‑up & 3CD flag; 194Q overage computed; GTA RCM flagged; cash aggregation breach flagged; <180d asset with additional depreciation handled.

15) Conclusion

Audit Copilot converts messy exports into law‑aligned insights within minutes—offline, explainable , and export‑ready for FY 2025–26.