Substituted Tax Audit Forms and

Its implications
CA Prakash B Thakkar
Prakash Thakkar & Co.
Chartered Accountants
Baroda
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Changes in Form 3CA/3CB/3CD

CBDT Notification No. 33 dated 25th July 2014.

Last change in form 3CD Notification No. 36/2009 dated

13-04-09 Clause 17A inserted.
CBDT has substituted Form 3CA, 3CB and 3CD.
This form is made effective from 25th July 2014.
Even for earlier previous year(s) (prior to AY 2014-15) also
revised form is made applicable.
Practical Difficulties Where audit is already completed but
report is not uploaded, report will be required to be prepared
under new format. E.g. Listed Companies, PSUs, Banks,
Insurance companies etc.

The existing Form No. 3CA, Form No. 3CB and Form No. 3CD have been
substituted vide Notification No.33 dated 25/07/2014 with immediate effect.
Taxpayers and CAs are advised to await the release of the new schema and
utility to submit in the newly notified aforementioned Forms. Taxpayers and
CAs are advised that any upload using the old Forms will not be valid even for
previous AYs in view of the notification of CBDT. The new schema and
updated utility for e-Filing of the same will be deployed shortly.
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Substituted Form 3CA

Vide CBDT Notification No. 33 dated 25th July 2014
FORM NO. 3CA
[See rule 6G(1)(a)]
Audit report under section 44AB of the Income - tax Act, 1961,
in a case where the accounts of the business or profession of a person
have been audited under any other law
*I / we report that the statutory audit of M/s. _________________ ( Name and address of the asseessee with
Permanent Account Number) was conducted by *me / us / M/s.____________________________________in
pursuance of the provisions of the___________________________Act, and*I/we annex hereto a copy of *my /
our / their audit report dated _______________________along with a copy of each of :(a) the audited *profit and loss account / income and expenditure account for the year ended on 31st March
period beginning from ----------------------to ending on -----------------------------.

(b) the audited balance sheet as at, 31st March_____; and

(c) documents declared by the said Act to be part of, or annexed to, the *profit and loss account / income and
expenditure account and balance sheet.
2. The statement of particulars required to be furnished under section 44AB is annexed herewith in Form No.
3CD.
3. In *my/our opinion and to the best of *my/our information and according to examination of books of account
including other relevant documents and explanations given to *me / us, the particulars given in the said Form
No.3 CD and the annexure thereto are true and correct subject to the following observations/qualifications, if
any:

a.
b.
c.
...................................................
**(Signature and stamp/Seal of the signatory)
Place : ______________
Date : ______________

Name of the signatory

Full address .

Notes :
1. * Delete whichever is not applicable
2. This report has to be signed by (i) a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949)
(ii) any person who in relation to any State, is by virtue of the provisions of sub-section (2) of section
226 of the Companies Act, 1956 (1 of 1956) entitled to be appointed to act as an auditor of companies
registered in that state; or
(iii) any person who is by virtue of any other law, entitled to audit the accounts of the assessee for the
relevant previous year.
2. **This report has to be signed by a person eligible to sign the report as per the provisions of section 44AB of
the Income-tax Act, 1961.

3. Where any of the requirements in this Form is answered in the negative or with qualification, give reasons
therefore.
4. The person who signs this audit report shall indicate reference of his membership number / certificate of
practice / authority under which he is entitled to sign this report.

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Form 3CA

Observations
a) For Profit & Loss A/c. or for Income &Expenditure
A/c. now period is to be mentioned. This assumes
importance where accounts are for less than 12
months.
b) In the opinion part now the opinion is to be formed
with reference to examination of books of account
including other relevant documents
c) Further now observations/qualification is to be
enumerated .

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Substituted Form 3CB

Vide CBDT Notification No. 33 dated 25th July 2014
FORM NO. 3CB
[See rule 6G(1)(b)]
Audit report under section 44AB of the Income - tax Act 1961,
in the case of a person referred to in clause (b) of sub - rule (1) of rule 6G
1. *I / we have examined the balance sheet as at on, ____, and the *profit and loss account / income and
expenditure account for the period beginning from ----------------------to ending on -----------------., attached
herewith, of ______________________________( Name ), _______________(Address), ____________
(Permanent Account Number).

2. *I / we certify that the balance sheet and the *profit and loss / income and expenditure account are in
agreement with the books of account maintained at the head office at _____________ and ** ___________
branches.
3.(a) *I / we report the following observations / comments / discrepancies / inconsistencies; if any:
(b) Subject to above, (A) *I / we have obtained all the information and explanations which, to the best of *my / our knowledge and
belief, were necessary for the purpose of the audit.
(B) In *my / our opinion, proper books of account have been kept by the head office and branches of the
assessee so far as appears from*my / our examination of the books.

(C) In *my / our opinion and to the best of *my / our information and according to the explanations given to *me
/ us, the said accounts, read with notes thereon, if any, give a true and fair view :(i) in the case of the balance sheet, of the state of the affairs of the assessee as at 31st March, ;and
(ii) in the case of the *profit and loss account / income and expenditure account of the *profit /loss or *surplus /
deficit of the assessee for the year ended on that date.
4. The statement of particulars required to be furnished under section 44AB is annexed herewith in Form
No.3CD.
5. In *my/our opinion and to the best of *my / our information and according to explanations given to *me
/ us, the particulars given in the said Form No.3 CD are true and correct subject to following observations/
qualifications, if any:
a.
b.
c.
...................................................
***(Signature and stamp/seal of the signatory)
Name of the signatory
Full address .

Place : ______________
Date : ______________
Notes :
1. *Delete whichever is not applicable.
2. **Mention the total number of branches.
3. ***This report is to be signed by
(i) a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or
(ii) any person who, in relation to any State, is, by virtue of the provisions of sub-section(2) of section
226 of the Companies Act, 1956, (1 of 1956), entitled to be appointed to act as an auditor of the
companies registered in that state.
3. ***This report has to be signed by person eligible to sign the report as per the provisions of section
44AB of the Income-tax Act, 1961.
4. The person, who signs this audit report, shall indicate reference of his membership number / certificate
of practice number / authority under which he is entitled to sign this report.

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Form 3CB

Observations
a) For Profit & Loss A/c. or for Income &Expenditure
A/c. now period is to be mentioned. This assumes
importance where accounts are for more/less than 12
months.
b) Unlike form 3CA, In the opinion part reference to
examination of books of account including other
relevant documents are not found.
c) Further now observations/qualifications are to be
enumerated .

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Section 44AB
Events triggering Tax Audit U/s. 44AB

Section 44AB
a) Business having turnover exceeding Rs. 1.00 Crore
b) Profession having receipts exceeding Rs. 25.00
Lacs
c) Having Business profits lower than prescribed u/s.
44AE (business of plying, hiring or leasing goods
carriages, Rs.7500 per vehicle/month (For AY
2014- 15 Rs. 5000 per HGV/Month and Rs. 4500
per non-HGV/Month), Sec. 44BB (supplying plant
and machinery on hire used in the prospecting for,
or extraction or production of mineral oils, 10%) or
Sec 44BBB (foreign companies engaged in the
business of civil construction, etc., in certain
turnkey power projects, 10%)
d) Having business profits lower than 8% u/s 44AD
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Newly inserted Clause 4 Registration Particulars

under Indirect Tax Laws

Whether the assessee is liable to pay indirect tax like

excise duty, service tax, sales tax, customs duty, etc. if
yes, please furnish the registration number or any other
identification number allotted for the same

Issues
What does the term liable represents?
What if liable but not registered.
Suggestion : The tax auditor should obtain such list from
his client alongwith copy of Registration Certificates.
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Old Clause 5 Vs New clause 6

Old Clause 5
Previous year ended

New Clause 6
Previous year : From
To

Now period of previous year is to be specified

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Newly inserted Clause 8 Applicable clause under

which Tax Audit is conducted

Indicate the relevant clause of section 44AB under

which the audit has been conducted

Indicate under which relevant clause from clause a) to d)

Clause a) Business having turnover exceeding Rs. 1.00 Crore
Clause b) Professional having receipts exceeding Rs. 25.00 Lacs
Clause c) Assessees delcaring lesser profit than specifited under
presumptive taxation vide 44AE, 44BB or 44BBB
Clause d) Assessee declaring lesser profit than specified under
presumption taxation u/s 44AD
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Old Clause 9 vs New Clause 11.

9(a) Whether books of account are
prescribed under section 44AA, if
yes, list of books so prescribed.

11. (a) Whether books of account

are prescribed under section 44AA,
if yes, list of books so prescribed.

(b) Books of account maintained. (In

case books of account are maintained
in a computer system, mention the
books of account generated by such
computer
system.)

(b) List of books of account

maintained and the address at which
the books of accounts are kept.
(In case books of account are
maintained in a computer system,
mention the books of account
generated by such computer system. If
the books of accounts are not kept at
one location, please furnish the
addresses of locations along with the
details of books of accounts
maintained at each location.)

(c) List of books of account examined.

(c) List of books of account and

nature of relevant documents
examined.

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Comment New Clause 11

Mention a list of books of account maintained; also
mention the address at which the books of accounts are
kept. Further if books of accounts are not kept at one
location, we need to furnish the addresses of locations
along with the details of books maintained at each
location.
Mention nature of relevant documents examined.
Definition of Books or Books of Account : Section
2(12A) books or books accounts includes ledgers, day
books, cash books, account books and other books
whether kept in a written form or as print outs of data
stored in a floppy, disc, tape or any other form of electromagnetic data storage device.
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Issues New Clause 11

What does the location mean?

The location from which data entry is made or
where the accounts are accessible.
What does the word kept mean in the context
of ERP/SAP?

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Old Clause10 Vs New clause 12

Old Clause 10

New Clause 12

Whether the profit and loss

account includes any profits and
gains assessable on presumptive
basis, if yes, indicate the amount
and the relevant sections (44AD,
44AE, 44AF, 44B, 44BB, 44BBA,
44BBB or any other relevant
section).

Whether the profit and loss account

includes any profits and gains
assessable on presumptive basis, if
yes, indicate the amount and the
relevant sections (44AD, 44AE,
44AF, 44B, 44BB, 44BBA, 44BBB,
Chapter XII-G, First Schedule or
any other relevant section).

Chapter XII-G Pertains to Special Provisions Relating to Income of

Shipping Companies on presumptive basis of daily tonnage income.
First Schedule Pertains to Insurance Business.
Section 44AF though inoperative from AY 11-12 still kept in new format
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New Clause 17 - Section 43CA and Section 50C

Where any land or building or both is transferred
during the previous year for a consideration less than
value adopted or assessed or assessable by any
authority of a State Government referred to in section
43CA or 50C, please furnish:
a) Details of property
b) Consideration received or accrued.
c) Value adopted or assessed or assessable.

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As per Section 43CA(1), if the consideration for the transfer of an asset (other
than a capital asset) being land, building or both, is less than the value in relation
to the stamp duty in respect of such transfer, such value shall be deemed to be
the full value of consideration for the purpose of computing profits and gains from
transfer of such asset.
As per Section 50C.(1) If the consideration for the transfer of a capital asset,
being land or building or both, is less than the value in relation to the stamp duty
in respect of such transfer, the value so adopted or assessed shall, be deemed to
be the full value of the consideration for the purpose of computing profits and
gains from the transfer of such asset.
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Old Clause15 V/S New Clause 19

Old Clause 15

New Clause 19

Change

Amounts admissible under

sections
a) 33AB
b) 33ABA
c) 33AC (wherever applicable)
d) 35
e) 35ABB
f) 35AC
g) 35CCA
h) 35CCB
i) 35D
j) 35DD
k) 35DDA
l) 35E:(a) debited to the profit and loss
account (showing the amount
debited and deduction
allowable under each section
separately);
(b) not debited to the profit and
loss account.

Amounts admissible
under sections
a) 32AC
b) 33AB
c) 33ABA
d) 35(1)(i)
e) 35(1)(ii)
f) 35(1)(iia)
g) 35(1)(iii)
h) 35(1)(iv)
i) 35(2AA)
j) 35(2AB)
k) 35ABB
l) 35AC
m) 35AD
n) 35CCA
o) 35CCB
p) 35CCC
q) 35CCD
r) 35D
s) 35DD
t) 35DDA
u) 35E

Omission
a) 33AC Omitted Reserve for
Shipping business
Addition
a) 32AC - Investment All.
b) 35(1)(i)- Scientific Research
Exps. - Self
c) 35(1)(ii) Sc. Research
through Assoc. University..
d) 35(1)(iia) Contribution to an
approved sc. Research
Company
e) 35(1)(iii) Social/Statistical
Research through
university
f) 35(1)(iv) Capital Exp. On
Scientific Research.
g) 35(2AA) Amt paid to
National Lab/Univ/IIT
h) 35(2AB) Recognised in
house R&D Center
i) 35AD Expenditure on
Specified Business
j) 35CCC Exp. On Agri.
Extensions project
k) 35CCD Exp on Skill Dev.
Project

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Old Clause16(b) V/s New clause 20(b)

Old Clause 16(b)

New Clause 20(b)

Any sum received from

employees towards
contributions to any provident
fund or superannuation fund or
any other fund mentioned in
section 2(24)(x); and due date
for payment and the actual
date of payment to the
concerned authorities under
section 36(1)(va).

Detail of contributions received

from employees for various
funds as referred to in section
36(1)(va).

No Change as such By omission of Section 2(24)(x) as

Section 36(1)(va) refers funds mentioned in Section 2(24)(x) i.e
PF/Superannuation/ESI/ other Employees Welfare Fund
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Old Clause 17(a) to 17(e) V/s New clause 21(a)

Old clause 17

New Clause 21(a)

Amounts debited to the Profit and Loss

Account being
(a) Expenditure of capital nature
(b) Expenditure of Personal Nature
(c) Expenditure on Advertisement in any
Souvenir, brochure, tract, pamphlet or
the like, published by a political party.
(d) Expenditure incurred at Clubs
(i) As entrance fees and subscriptions
(ii) As cost for club services and
facilities used.
(e)(i) Expenditure by way of penalty or
fine for violation of any law for the
time being in force
(ii) any other penalty or fine
(iii) expenditure incurred for any
purpose which is an offence or which
is prohibited by law.

Please furnish the details of amounts

debited to the profit and loss account,
being in the nature of capital, personal,
advertisement expenditure etc.

Nature

Sr. No

Particul Amt.
ars
Rs.

Expenditure incurred at clubs being cost

for club services and facilities used
Expenditure by way of penalty or fine or
violation of any law for the time being in
force
Expenditure by way of any other penalty
or fine not covered above
Expenditure incurred for any purpose
which is an offence or which is prohibited
by law

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Issues - clause 21(a)

1. Whether all advertisement expenses are to be
reported?
2. Expenditure incurred at club as entrance fee and
subscription is removed Implication ???
In my opinion - Payment to clubs would not include
organization such as Rotary, Lions, Jaycees, and
Giants etc., they being service organization, not
considered to be club.

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Old Clause 17(f) V/s New clause 21(b)

Old Clause (f)

New Clause 21(b)

amounts
inadmissible
under section
40(a);

Amounts inadmissible under section 40(a):(i) As payment to non-resident referred to in sub-clause (i)
A. Detail of payment on which tax is not deducted:
I. Date of payment
II. Amount of payment
III. Nature of payment
IV. Name and address of the payee
B. Detail of payment on which tax has been deducted but has not been paid
during the previous year or in the subsequent year before the expiry of time
prescribed under section 200(1)
I. Date of payment
II. Amount of payment
III. Nature of payment
IV. Name and address of the payee
V. Amount of tax deducted

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(ii) as payment referred to in sub-clause (ia)

(A) Details of payment on which tax is not deducted:
(I) date of payment
(II) amount of payment
(III) nature of payment
(IV) name and address of the payee
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Old Clause 17(f) V/s New clause 21(b)

Old Clause (f)

New Clause 21(b)

(B) Details of payment on which tax has been deducted but has not been
paid on or before the due date specified in sub- section (1) of section
139.
(I) date of payment
(II) amount of payment
(III) nature of payment
(IV) name and address of the payer
(V) amount of tax deducted
(VI) amount out of (V) deposited, if any

(iii) under sub-clause (ic) [Wherever applicable]

(iv) under sub-clause (iia)
(v) under sub-clause (iib)
(vi) under sub-clause (iii)
(A) date of payment
(B) amount of payment
(C) name and address of the payee
(vii) under sub-clause (iv)
(viiii) under sub-clause (v)
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Old clause 17(f) vs new clause 21(b) Sec 40(a)

(i) Sec 40(a)(i) - Any Interest, Royalty of FTS or any
other sum chargeable to tax under this act to which is
payable, (A) outside India; or (B) in India to a
non-resident, not being a company or to a foreign
company on which tax is deductible at source under
Chapter XVII-B and such tax has not been deducted
or, after deduction, has not been paid during the
previous year, or in the subsequent year before the
expiry of the time prescribed under sub-section (1) of
section 200:
Please note that vide Finance (No. 2) Act, 2014, the
time prescribed under 200(1) has been extended upto
due date specified u/s. 139(1) of the Act wef 1-4-15.
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Old clause 17(f) vs new clause 21(b) Sec 40(a)

(ii) 40(a)(ia) any interest, commission or
brokerage, rent, royalty, fees for professional
services or fees for technical services payable to a
resident, or amounts payable to a contractor or
sub-contractor, being resident, for carrying out
any work including supply of labour for carrying
out any work, on which tax is deductible at
source under Chapter XVII-B and such tax has
not been deducted or, after deduction, has not
been paid on or before the due date specified in
sub-section (1) of Section 139
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Old clause 17(f) vs new clause 21(b) Sec 40(a)

(iii)40(a)(ic) any sum paid on account of fringe
benefit tax under Chapter XIIH,
(iv) 40(a)(iia) any sum paid on account of wealthtax.
(v) 40(a)(iib) Sum levied by State Govt. by way of
royalty, license fee, Service fee, privilege fee, service
charge etc. to its state undertaking the same are not
entitled for deduction in the hands of State govt.
undertaking.
(vi) 40(a)(iii) provides for disallowance for salary
expenditure where tax have not been paid or
deducted where salaries is payable (a) outside India;
or (b) to a non-resident.
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Old clause 17(f) vs new clause 21(b) Sec 40(a)

(vii) 40(a)(iv) any payment to a provident or other

fund established for the benefit of employees of
the assessee, unless the assessee has made
effective arrangements to secure that tax shall be
deducted at source from any payments made from
the fund which are chargeable to tax under the
head "Salaries";
(viii) 40(a)(v) any tax actually paid by an
employer referred to in clause (10CC) of Section
10; (Non Monetary perquisite)

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Old Clause 17(f) vs. New Clause 21(b) Section 40(a)

Earlier also we were suppose to report all

these matters, in new substituted form it is
now specifically provided enumerating all
applicable sub clauses and reporting format.
Now clause wise separate reporting in a given
format is called for.
Cross reference your inputs in this clause with
inputs of clause 34.

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Old Clause 17(h) V/s New clause 21(d)

Old Clause 17(h)

New Clause 21(d)

(A) whether a certificate has

been obtained from the assessee
regarding payments relating to any
expenditure covered under section
40A(3) that the payments were made
by account payee cheques drawn on
a bank or account payee bank draft,
as the case may be; Yes / No

Disallowance/deemed income under section

40A(3)
(A) On the basis of the examination of books
of account and other relevant
documents/evidence, whether the
expenditure covered under section 40A(3)
read with rule 6DD were made by account
payee cheque drawn on a bank or account
payee bank draft. If not, please furnish the
details:

(B) amount inadmissible under

section 40A(3), read with rule 6DD
[with break-up of inadmissible
amounts;

(B)On the basis of the examination of books

of account and other relevant documents/
evidence, whether the payment referred to in
section 40A(3A) read with rule 6DD were
made by account payee cheque drawn on a
bank or account payee bank draft. If not,
please furnish the details of amount deemed
to be the profits and gains of business or
profession under section 40A(3A);

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Clause 21(d) Section 40A(3)/40A(3A)

Earlier Only certificate was to be obtained, from the assessee,
stating whether there is any transaction covered by 40A(3)
exist not.
Now Reporting of disallowance/deemed income is required
to the extent it is possible from the examination of books of
account and other relevant documents/ evidences whether any
expenditure is made by other than account payee cheque/bank
draft.
Similar reporting is required in respect of Section 40A(3A)
Issues
1) Whether a bank statement indicating cash payment/ bearer
cheque payment, needs reporting by an Auditor.
2) Section 40A(3A) reporting requires to verify books of
earlier year also.
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Old Clause 19 V/s New clause 24

Old Clause 19

New Clause 24

Amounts deemed to be profits and Amounts deemed to be profits and

gains under section 33AB or
gains under section 32AC, 33AB
33ABA or 33AC
or 33ABA or 33AC.

Sec 32AC Investment Allowance Deemed income if P&M

sold within 5 years from date of installation on which
Investment Allowance is claimed.
33AB Tea Development Account
33ABA Site Restoration Fund
33AC Reserve for Shipping Business
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New Clause 28
Whether during the previous year the assessee has received
any property, being share of a company not being a
company in which the public are substantially interested
without consideration or for inadequate consideration as
referred to in section 56(2)(viia), if yes, please furnish the
details of the same.

Suppose M has sold shares of a closely held company to M/s

XYZ for Rs.20 lakhs. FMV thereof as per prescribed method is
Rs. 22 lakhs. The difference is Rs. 2 lakhs being in excess of
Rs. 50,000 M/s. XYZ would be chargeable to tax on Rs. 2
lakhs.
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New Clause 29
Whether during the previous year the assessee received any
consideration for issue of shares which exceeds the fair
market value of the shares as referred to in section
56(2)(viib), if yes, please furnish the details of the same.
Section 56(2)(viib) provides that where a closely held
company issues shares to a resident, for an amount received
in excess of the fair market value of the shares, then the said
excess portion will be regarded as income of the Company
and charged to tax under the head Income from other
sources.
Section applicable when issue above face value. Clause is
talking about FMV.
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Old Clause 24(c) V/s New Clause 31(c) Loans & Adv
Old Clause 24(c)

New Clause 31(c)

Whether a certificate has been obtained

from the assessee regarding taking or
accepting loan or deposit, or repayment
of the same through an account payee
cheque or an account payee bank draft.
Yes/ No

Whether the taking or accepting loan

or deposit, or repayment of the same
were made by account payee cheque
drawn on a bank or account payee
bank draft based on the examination
of books of account and other relevant
documents

The particulars (i) to (iv) at (b) and the

Certificate at (c) above need not be
given in the case of a repayment of any
loan or deposit taken or accepted from
Government, Government company,
banking company or a corporation
established by a Central, State or
Provincial Act
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The particulars (i) to (iv) at (b) and

comment at (c) above need not be
given in the case of a repayment of
any loan or deposit taken or accepted
from Government, Government
company, banking company or a
corporation established by a Central,
State or Provincial Act;

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Old Clause 24(c) New Clause 31(c)Loans & Adv.

Auditor to examine books of accounts and other relevant

documents and report to the extent possible, certificate
from assessee is not enough.
Acceptance or repayment of any loan or deposit by use of
electronic clearing system through a bank account is
permissible as per the amendment to section 269SS/269T
vide The Finance (No. 2) Act, 2014 w.e.f. 01-04-2015.

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New Clause 32(c) Speculation loss U/s. 73

32(c) Whether the assessee has incurred any

speculation loss referred to in section 73 during
the previous year, If yes, please furnish the
details of the same.

Details of Speculative losses U/s 73 and carry

forward and set off of losses is to be reported.

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New Clause 32(d) Loss U/s. 73A

32(d) whether the assessee has incurred any loss

referred to in section 73A in respect of any
specified business during the previous year, if
yes, please furnish details of the same.
Auditor to report whether any loss computed in respect of
any specified business referred to in section 35AD, if any or
any other specified businesses.
Section 73A(1) reads as Any loss, computed in respect of
any specified business referred to in section 35AD shall not
be set off except against profits and gains, if any, of any other
specified business.
35

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New Clause 32(e) Loss of deemed speculative

business by company under explanation to Sec. 73

32(e) In case of a company, please state that

whether the company is deemed to be carrying
on a speculation business as referred in
explanation to section 73, if yes, please furnish
the details of speculation loss if any incurred
during the previous year.
The explanation to Section 73 deems that the
companies which are into the business of purchase and
sales of shares, even if delivery based, are treated to be
carrying on speculative business.
36

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Old Clause 26 V/s New Clause 33

Old Clause 26
Section-wise details of
deductions, if any, admissible
under Chapter VIA.

New Clause 33
Section-wise details of
deductions, if any, admissible
under Chapter VIA or
Chapter III
(Section 10A, Section
10AA).

Now deduction under Chapter III is also to be reported particularly :Sec. 10A Newly established undertakings under FTZ etc.
Sec.10AANewly established undertakings in SEZs.
37

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Old Clause 27 New Clause 34

(a) Whether the assessee has complied
with the provisions of Chapter XVII-B
regarding deduction of tax at source and
regarding the payment thereof to the credit
of the Central Government. (Yes No)

(a). Whether the assessee is

required to deduct or collect tax as
per the provisions of Chapter
XVII-B or Chapter XVII-BB, if
yes please furnish details.

(b) If the provisions of Chapter XVII-B

have not been complied with, please give
the following details namely
i) Tax deductible and not deducted at all
(ii) shortfall on account of lesser
deduction than required to be deducted
(iii) tax deducted late
(iv) tax deducted but not paid to the credit
of the Central Government
Please give the details of cases covered in
(i) to (iv) above.

(b) Whether the assessee has

furnished the statement of tax
deducted or tax collected within
the prescribed time. If not, please
furnish the details.
(c) Whether the assessee is liable
to pay interest under section
201(1A) or section 206C(7). If yes,
please furnish details.

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Clause 34 TDS/TCS Applicability-Chapter XVII-B/BB

Whether the assessee is required to deduct or collect tax asper the provisions of Chapter XVII-B or
Chapter XVII-BB. If yes, Please furnish

Sr.
No.

Particulars

TAN

Sec

Nature of Payment

Total amount of Payment or Receipt of the nature specified in Col. 3

Total amount on which tax was required to be deducted or collected

out of (4)

Total amount on which tax was deducted or collected at specified

rate out of (5)

Amount of tax ded. Or coll. Out of (6)

Total amount on which tax was deducted or collected at less than

specified rate out of (7)

Amount of tax deducted or collected on (8)

10
39

Amount of tax deducted or collected not deposited to the credit of

the Central Government out of (6) and (8).
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Clause 34 TDS/TCS Applicability-Chapter XVII-B/BB

Whether assessee has furnished the statement of tax
deducted and collected within the prescribed time. If
not, Please furnish the details
Sr. No. Particulars
1

TAN

Type of Form

24Q, 26Q, 27Q, 27EQ

Due Date of Furnishing

15 days from the end of the quarter

for first three quarters. 1 Months
and 15 days from the end of the
quarter for last quarter.

Date of Furnishing, if furnished

Whether the statement of Tax deducted

or collected contains information about
all transactions which are required to
be reported.

Report here the instances on which

TDS/TCS is not made.
Issue Instance of one quarter
reported in next quarter.

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Clause 34 TDS/TCS Applicability-Chapter XVII-B/BB

Whether the assessee is liable to pay interest under section
201(1A) or section 206C(7). If Yes, please furnish
Sr. No.

Particulars

TAN

Amount of Interest Payable

Amount paid out of column 2

Date of Payment

Interest U/s. 201(1A)(i) 1% for every month or part of a month on the amount of
such tax from the date on which such tax was deductible to the date on which such
tax is deducted; and U/s. 201(1A) (ii) 1.5% for every month or part of a month on
the amount of such tax from the date on which such tax was deducted to the date on
which such tax is actually paid.
Interest U/s. 206C(7) Where a seller does not collect the tax or after collecting the
tax fails to pay he shall be liable to pay simple interest at the rate of 1% p.m. or part
thereof on the amount of such tax from the date on which such tax was collectible to
41
the
date on which the tax was actually paid.
Virtual TDS/TCS Assessment!!!
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Old Clause 29 New Clause 36

In the case of a domestic company,
details of tax on distributed profits
under section 115-O in the following
form :
(a) total amount of distributed
profits;
(b) total tax paid thereon;
(c) dates of payment with amounts.

In the case of a domestic company,

details of tax on distributed profits
under section 115-O in the following
form :
a. total amount of distributed profits;
b. amount of reduction as referred to
in section 115-O(1A)(i)
c. Amount of reduction as referred to
in section 115-O(1A)(ii)
d. total tax paid thereon; date of
payment with amounts.

Clause (b) is now required to be segregated for reduction in DDT wrt

(1) Section 115O(1A)(i) Holding company receiving Dividend from subsidiary.
(ii) Section 115O(1A)(ii) Dividend, if any, paid to any person for, or on behalf of,
the New Pension System Trust referred to in Section 10(44).
42

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Old Clause 30 vs New Clause 37

Whether any cost audit was
carried out, if yes, enclose a
copy of the report of such audit
[See section 139(9)].

Whether any cost audit was

carried out, if yes, give the
details, if any, of disqualification
or disagreement on any matter/
Item/quantity as may be
reported/identified by the
auditor.

Emphasis is now on furnishing details of disqualification or

disagreement on any matter/item/quantity rather than submitting
a copy of report.
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Old Clause 31 vs New Clause 38

Whether any audit was
conducted under the Central
Excise Act, 1944, if yes, enclose
a copy of the report of such
audit.

Whether any audit was

conducted under the Central
Excise Act, 1944, if yes, give the
details, if any, of disqualification
or disagreement on any
matter/item /quantity as may be
reported/identified by the
auditor.

Emphasis is now on furnishing details of disqualification or

disagreement on any matter/item/quantity rather than submitting
a copy of report.
44

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New Clause 39 Service Tax Audit U/s. 72A of

Finance Act, 1994

Whether any audit was conducted under section

72A of the Finance Act, 1994 in relation to
valuation of taxable services, if yes, give the
details, if any, of disqualification or disagreement
on any matter/item/quantity as may be reported/
identified by the auditor.

Reporting on details of disqualification or disagreement on any

matter/item/quantity.
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Old Clause 32 vs New Clause 40

Accounting Ratios with
calculations as follows
(a) Gross Profit/Turnover
(b) Net Profit Turnover
(c) Stock in Trade/Turnover
(d) Material Consumed/Finished
Goods Produced.

Sr.No.

Particulars

Turnover

Gross Profit/
Turnover

Net Profit/
Turnover

Stock in
trade/Turnov
er

Material
consumed /
Finished
Goods
Produced

Column of Turnover is added.

Preceding year data is to be provided.
46

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Previous
year

Preceding
Previous
year

New Clause 41Demand/Refund under Other Laws

Please furnish the details of demand raised or
refund issued during the previous year under any
tax laws other than Income Tax Act, 1961 and
Wealth Tax Act, 1957 alongwith details of relevant
Proceedings.

This will provide details of other litigations under other tax laws
to Income Tax Authorities which may have its own ramifications.

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Annexures Removed

Annexure (I) relating to abstract of balance

sheet and statement of profit and loss and
Annexure (II) relating to the value of the fringe
benefits

are no longer required to be annexed to the

Form No. 3CD.

48

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CA Prakash B Thakkar, FCA, DISA (ICA)

M/s. Prakash Thakkar & Co., Chartered Accountants
202, Mangaldhara Complex, 83, Sampatrao Colony, RC Dutt
Road, Vadodara-390007
(O) 0265-2351253/54, (M) 9898061675
Email: ptcca.baroda@gmail.com

www.taxguru.in