This book provides a detailed commentary on provisions relating to Tax Audit and clauses of Form 3CD

The Present Publication is the 12th Edition, updated till 20th September 2020, incorporating all the changes made by the following:

·    The Finance Act 2020

·    The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020

The key features of this book are as follows:

·    Analysis of the audit requirement under Income tax provision;

·    An in-depth discussion on every clause of the tax audit report Form No. 3CA, 3CB and 3CD;

·    Analysis of guidance note released by the ICAI on tax Audit.

·    Contents of the book are as follows:

o   Section 44AB: Audit of accounts of certain persons carrying on business or profession

o   Persons carrying on business who are obliged to comply with provisions of Section 44AB as regards compulsory audit of accounts

o   Turnover-linked compulsory audit obligations u/s 44AB(a) on certain persons carrying on business

o   Compulsory audit obligations u/s 44AB(c)/(e) on certain persons carrying on business regardless of their turnover/gross receipts/ sales (non-turnover-linked-audit obligations)

o   Persons carrying on business who are exempt from tax audit (compulsory audit obligations) u/s 44AB

o   Presumptive tax regime under Section 44AD for eligible businesses carried on by resident individuals, HUFs & Firms

o   Presumptive tax regime u/s 44AE for assessees owning good, carriages and plying, hiring or leading them

o   When person carrying on profession is required to get his accounts audited u/s 44AB(b) & u/s 44AB(d)

o   Presumptive tax regime available under the act to persons carrying on specified professions

o   Turnover on gross receipts

o   Obligations cast by Section 44AB

o   Preparation of financial statements

o   Form No. 3CA

o   Form No. 3CB

o   Form No. 3CD

o   Clauses 1 to 3 and 5 to 7 | Routine particulars (Name, Address, PAN or Aadhar Number, Status, Previous Year, Assessment Year)

o   Clause 4 of Form No. 3CD | Registration under Indirect Tax Laws

o   Clause 8 of Form No. 3CD | Relevant clause of Section 44AB under which tax audit is applicable

o   Clause 9 of Form No. 3CD | Details regarding Firms/AOPs/LLPs

o   Clause 10 of Form No. 3CD | Nature of business/profession

o   Clause 11 of Form No. 3CD | Books of accounts

o   Clause 12 of Form No. 3CD | Presumptive income

o   Clause 13 of Form No. 3CD | Method of accounting & compliances

o   Clause 14 of Form No. 3CD | Method of stock valuation

o   Clause 15 of Form No. 3CD | Capital asset converted into stock-in-trade

o   Clause 16 of Form No. 3CD | Amounts not credit to profit and loss account

o   Property (Land or Building or Both) Transferred at less than stamp duty value - Clause 17 of Form No. 3CD

o   Clause 18 of Form No. 3CD | Depreciation

o   Clause 19 of Form No. 3CD | Amounts deductible under Sections 33AB, 33ABA, etc.

o   Clause 20 of Form No. 3CD | Bonus/employees contribution to PF

o   Clause 21 of Form No. 3CD | Amounts debited to profit and loss account

o   Clause 22 of Form No. 3CD | Amounts of interest inadmissible under Section 23 of MSME Act, 2006

o   Clause 23 of Form No. 3CD | Payments to persons specified under Section 40A(2)(b)

o   Clause 24 of Form No. 3CD | Amounts deemed to be profits and gains under Section 32AC/32AD/33AB/33ABA/33AC

o   Clause 25 of Form No. 3CD | Amounts deemed to be profits and gains under Section 41

o   Clause 26 of Form No. 3CD | Sums covered by Section 43B

o   Clause 27 of Form No. 3CD | CENVAT Credit/Input Tax Credit/Prior Period Items

o   Clause 28 of Form No. 3CD | Gifts of unlisted shares received by LLPs/Firms/Companies on or before 31-3-2017

o   Clause 29 of Form No. 3CD | Share premium received by closely held companies in excess of FMV taxable – Section 56(2)(viii)(b)

o   Clause 29A of Form No. 3CD | Amount chargeable under Section 56(2)(ix)

o   Clause 29B of Form No. 3CD | Gifts/deemed gifts chargeable under Section 56(2)(x)

o   Clause 30 of Form No. 3CD | Hundi transactions

o   Clause 30A of Form No. 3CD | Secondary transfer pricing adjustments

o   Clause 30B of Form No. 3CD | Thin capitalisation adjustments

o   Clause 31 of Form No. 3CD | Acceptance/repayment of loan/deposit/specified sum

o   Clause 32 of Form No. 3CD | Unabsorbed loss/depreciation

o   Clause 33 of Form No. 3CD | Chapter VI-A deduction

o   Clause 34 of Form No. 3CD | Audit of compliance with TDS provisions

o   Clause 35 of Form No. 3CD | Quantitative details

o   Clause 36 of Form No. 3CD | Dividend distribution tax

o   Clause 36A of Form No. 3CD | Deemed dividend u/s 2(22)(e)

o   Clause 37 of Form No. 3CD | Cost audit report

o   Clause 38 of Form No. 3CD | Central excise audit report

o   Clause 39 of Form No. 3CD | Service tax audit for valuation for services

o   Clause 40 of Form No. 3CD | Accounting ratios

o   Clause 41 of Form No. 3CD | Details of demands raised or refunds issued under tax laws

o   Clause 42 of Form No. 3CD | Furnishing of Form No. 61, 61A, and 61B

o   Clause 43 of Form No. 3CD | Furnishing of country by country report u/s 286

o   Clause 44 of Form No. 3CD | Break-up of total expenditure of entities registered or not registered under GST