Due diligence

Due diligence is the investigation a buyer, investor or lender runs before a transaction to verify a company's financial, legal, tax and compliance position — and a clean compliance trail makes it faster and cheaper.

Compliance and tax diligence typically asks for GST and TDS returns and payment proofs, ROC filings, statutory registers, employment and IP agreements, and a record of any notices. Gaps or unfiled returns surface here and often reduce valuation or delay closing — which is why evidence-backed compliance is a diligence asset.