Tax Audit Reckoner for audit of cash transactions I-9
Tax Audit Reckoner for audit of sale of immovable property I-11
Tax Audit Reckoner for audit of share capital I-12
Tax Audit Reckoner for audit of loans, deposits and borrowings liabilities I-13
Reckoner of Clauses of Form No. 3CD not relevant/applicable to tax audit for assessment year 2024-25 I-14
Tax Audit Reckoner of Clauses of Form No. 3CD not applicable to assessees following cash basis of accounting I-15
SECTION 44AB: AUDIT OF ACCOUNTS OF CERTAIN PERSONS CARRYING ON BUSINESS OR PROFESSION 1
PERSONS CARRYING ON BUSINESS WHO ARE OBLIGED TO COMPLY WITH PROVISIONS OF SECTION 44AB AS REGARDS COMPULSORY AUDIT OF ACCOUNTS 19
TURNOVER-LINKED COMPULSORY AUDIT OBLIGATIONS U/S 44AB(a) ON CERTAIN PERSONS CARRYING ON BUSINESS 23 COMPULSORY AUDIT OBLIGATIONS U/S 44AB(c )/( e ) ON CERTAIN PERSONS CARRYING ON BUSINESS REGARDLESS OF THEIR TURNOVER/GROSS RECEIPTS/SALES (NONTURNOVER-LINKED AUDIT OBLIGATIONS) 33
PERSONS CARRYING ON BUSINESS WHO ARE EXEMPT FROM TAX AUDIT (COMPULSORY AUDIT OBLIGATIONS U/S 44AB) 34
WHEN PERSON CARRYING ON PROFESSION IS REQUIRED TO GET HIS ACCOUNTS AUDITED U/S 44AB(b) & U/S 44AB(d) 39
TURNOVER OR GROSS RECEIPTS 48
OBLIGATIONS CAST BY SECTION 44AB 65
PREPARATION OF FINANCIAL STATEMENTS
FORM NO. 3CA
FORM NO. 3CB
FORM NO. 3CD
CLAUSE 1 OF FORM 3CD: NAME OF THE ASSESSEE
CLAUSE 2 OF FORM 3CD: ADDRESS
CLAUSE 3 OF FORM 3CD: PERMANENT ACCOUNT NUMBER
CLAUSE 4 OF FORM 3CD: REGISTRATIONS UNDER INDIRECT TAX LAWS
CLAUSE 5 OF FORM 3CD: STATUS
CLAUSE 6 OF FORM 3CD: PREVIOUS YEAR 157
CLAUSE 7 OF FORM 3CD: ASSESSMENT YEAR 162
CLAUSE 8 OF FORM 3CD: RELEVANT CLAUSE OF SECTION 44AB UNDER WHICH TAX AUDIT IS CONDUCTED 164
CLAUSE 8A OF FORM 3CD: WHETHER ASSESSEE HAS OPTED FOR SECTION 115BA/115BAA/115BAB/115BAC/115BAD/ 115BAE? 169
CLAUSE 9 OF FORM NO. 3CD : DETAILS REGARDING FIRMS/ AOPs/LLPs 180
CLAUSE 10 OF FORM NO. 3CD : NATURE OF BUSINESS/PROFESSION 200
CLAUSE 11 OF FORM NO. 3CD : BOOKS OF ACCOUNT 214
CLAUSE 12 OF FORM NO. 3CD : PRESUMPTIVE INCOME 238
CLAUSE 13 OF FORM NO. 3CD : METHOD OF ACCOUNTING AND ICDS 249
CLAUSE 14 OF FORM NO. 3CD : METHOD OF STOCK VALUATION 313
CLAUSE 15 OF FORM NO 3CD: CAPITAL ASSET CONVERTED INTO STOCK IN TRADE 334
CLAUSE 16 OF FORM NO 3CD: AMOUNTS NOT CREDITED TO PROFIT AND LOSS ACCOUNT 350
CLAUSE 17 OF FORM NO 3CD: PROPERTY TRANSFERRED AT LESS THAN SDV 390
CLAUSE 18 OF FORM NO 3CD: DEPRECIATION ADMISSIBLE 424
CLAUSE 19 OF FORM NO 3CD: AMOUNTS DEDUCTIBLE UNDER SECTIONS 32AC TO 35E 475
CLAUSE 20 OF FORM NO 3CD: BONUS AND EMPLOYEES’ CONTRIBUTIONS TO PF ESIC 516
CLAUSE 21 OF FORM NO 3CD: AMOUNTS INADMISSIBLE UNDER SECTIONS 37(1), 40(a), 40(b), 40(ba), 40A(3), 40A(7), 40A(9), 14A AND 36(1)(iii) 534
CLAUSE 22 OF FORM NO. 3CD: AMOUNTS INADMISSIBLE UNDER SECTION 43B(h) OF THE ACT AND UNDER SECTION 23 OF MSMED ACT 685
CLAUSE 23 OF FORM NO. 3CD: PAYMENTS TO PERSONS SPECIFIED UNDER SECTION 40A(2)(b) 731
CLAUSE 24 OF FORM NO 3CD: DEEMED PROFITS UNDER SECTION 32AC/32AD/33AB/33ABA/33AC 744
CLAUSE 25 OF FORM NO. 3CD: AMOUNTS DEEMED TO BE PROFITS AND GAINS UNDER SECTION 41 757
CLAUSE 26 OF FORM NO. 3CD : SUMS COVERED BY CLAUSES (a) TO (g) OF SECTION 43B 776
CLAUSE 27 OF FORM NO. 3CD : CENVAT CREDIT & PRIOR PERIOD ITEMS 797
CLAUSE 28 OF FORM NO. 3CD : “GIFTS” OF UNLISTED SHARES RECEIVED BY LLPs/FIRMS/COMPANIES ON OR BEFORE 31-3-2017 809
CLAUSE 29 OF FORM NO. 3CD : SHARES ISSUED BY CLOSELY-HELD CO. AT PREMIUM & ISSUE PRICE IS ABOVE FMV 810
CLAUSE 29A OF FORM NO. 3CD : AMOUNT TAXABLE UNDER SECTION 56(2)(ix) 811
CLAUSE 29B OF FORM NO. 3CD : GIFTS/DEEMED GIFTS
CHARGEABLE UNDER SECTION 56(2)(x) 820
CLAUSE 30 OF FORM NO. 3CD : HUNDI TRANSACTIONS IN CASH 847
CLAUSE 30A: SECONDARY TRANSFER PRICING ADJUSTMENTS 859
CLAUSE 30B: THIN CAPITALISATION ADJUSTMENTS 872
CLAUSE 30C OF FORM NO. 3CD : GAAR (GENERAL ANTI AVOIDANCE RULES) 888
CLAUSE 31 OF FORM 3CD: ACCEPTANCE OR REPAYMENT OF LOAN/DEPOSIT/SPECIFIED SUM ABOVE ` 20,000 LIMIT IN SECTION 269SS/SECTION 269T & RECEIPT/PAYMEMT ABOVE
` 2,00,000 LIMIT IN SECTION 269ST 905
CLAUSE 32 OF FORM NO. 3CD : UNABSORBED LOSS/DEPRECIATION 989
CLAUSE 33 OF FORM NO. 3CD : CHAPTER VI-A DEDUCTIONS 1024
CLAUSE 34 OF FORM NO. 3CD : AUDIT OF COMPLIANCE WITH TDS PROVISIONS 1034
CLAUSE 35 OF FORM NO. 3CD: QUANTITATIVE DETAILS IN CASE OF TRADING CONCERNS AND MANUFACTURING CONCERNS 1060
CLAUSE 36 OF FORM NO. 3CD: DIVIDEND DISTRIBUTION TAX 1075
CLAUSE 36A OF FORM NO. 3CD : DEEMED DIVIDEND UNDER SECTION 2(22)(e) 1076
CLAUSE 37 OF FORM NO. 3CD : COST AUDIT REPORT 1092
CLAUSE 38 OF FORM NO. 3CD : CENTRAL EXCISE AUDIT REPORT 1099
CLAUSE 39 OF FORM NO. 3CD : SERVICE TAX AUDIT FOR VALUATION OF SERVICES 1105
CLAUSE 40 OF FORM NO. 3CD : ACCOUNTING RATIOS 1106
CLAUSE 41 OF FORM NO. 3CD : DEMANDS RAISED & REFUNDS ISSUED UNDER TAX LAWS OTHER INCOME TAX ACT & WEALTH TAX ACT 1119
CLAUSE 42 OF FORM 3CD : FURNISHING OF FORM NOS. 61, 61A AND 61B 1128
CLAUSE 43 OF FORM 3CD: FURNISHING OF COUNTRY BY COUNTRY REPORTING UNDER SECTION 286 1140
CLAUSE 44 OF FORM 3CD: BREAKUP OF TOTAL EXPENDITURE INCURRED BY ASSESSEE ACCORDING TO GST REGISTRATION STATUS OF PAYEES 1151
CLAUSE 22 OF FORM NO. 3CD: AMOUNTS INAD -
MISSIBLE UNDER SECTION 43B(h) OF THE ACT AND UNDER SECTION 23 OF MSMED ACT
About 34.1 vide G.S.R. 155 E , dated 05-03-2024, f g f g or h new clause h in Section 43B h “ h B a g h It is hoped that CBDT will issue the necessary corrigendum in this regard. e
See Para 34.11 below Applicability of this Clause
Para 34.1 b c
Chapter at a Glance 34.1-3
[Para 34.2]
[Para 34.3]
[Para 34.4]
Para 34.5-1
[Para 34.5] h
Para 34.5-2
Para 34.5-3
Para 34.5-5
[Para 34.6]
[Para 34.8]
[Para 34.7]
Para 34.5-4
[Para 34.9]
[Para 34.10]
Para 34.10-1
Para 34.10-2
Para 34.10-3
Promoting of Timely Payments to Micro and Small Enterprises-Section 43B(h) 34.5-1 h
43B. Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of—
h any sum payable by the assessee to a micro or small enterprise beyond the time limit specified in section 15 of the Micro, Small and Medium Enterprises Development Act, 2006, shall be allowed (irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting regularly employed by him) only in computing the income referred to in section 28 of that previous year in which such sum is actually paid by him: provisoh
“Provided that nothing contained in this section [except the provisions of clause ] shall apply in relation to any sum which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub-section ( ) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid, and the evidence of such payment is furnished by the assessee along with such return.”
Explanation 4 e g
‘ “micro enterprise” shall have the meaning assigned to it in clause of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act’); “small enterprise” shall have the meaning assigned to it in clause ( ) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006.’
non-obstante
non-obstanteh h h h
Para 34.5 690h
e.g
meaning assigned to it in clause h of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006
(m)
Circular No.1/2024, dated 23-1-2024
h
21. Promoting timely payments to Micro and Small Enterprises
21.1
21.2 h
Explanation 4 e g
‘ “micro enterprise” shall have the meaning assigned to it in clause of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act’); “small enterprise” shall have the meaning assigned to it in clause ( ) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006.’ e g
Explanation 4h hmby notification
Classification of enterprises based on composite criteria of investment and turnover.
Notification No. SO 2119 e , dated 26-6-2020
9 composite criterion of investment and turnover
a micro enterprisea small enterprise
In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise shall continue to avail of all non-tax benefits of the category (micro or small or medium) it was in before the re-classification, for a period of three years from the date of such upward change.
Explanation I
Whether unregistered MSE suppliers also to be considered for Section 43B purposes? Or are only the Udyam-Registered MSE Suppliers to be considered?
Meemansa U.P. Bhoodan Yagna Samiti v Braj Kishore
apoorvata/navyata
It is noteworthy that Para 2 of the Notification providing for Udyam Registration is titled “Becoming micro, small or medium enterprise”
Therefore, only a Udyam-registered micro or small enterprise must be considered for section 43B h purposes.
“Promoting timely payments to Micro and Small Enterprises
Section 15 of the MSMED Act mandates payments to micro and small enterprises within the time as per the written agreement, which cannot be more than 45 days. If there is no such written agreement, the section mandates that the payment shall be made within 15 days
Circular No.1/2024, dated 23-1-2024
21. Promoting timely payments to Micro and Small Enterprises
21.1
21.2 vide h
21.3 Section 15 of the MSMED Act mandates payments to micro and small enterprises within the time as per the written agreement, which cannot be more than 45 days. If there is no such written agreement, the section mandates that the payment shall be made within 15 days. Thus, this amendment to section 43B of the Act allows the payment as deduction only on payment basis. It can be allowed on accrual basis only if the payment is within the time mandated under section 15 of the MSMED Act.
Applicability:
697 Para 34.8
Details/MRL to be Obtained from the Auditee 34.7 i.e.
Linkages of this clause with Form 3CA or Form 3CB or with other clauses of Form 3CD 34.8
Note:
Audit Checklist in the Case of any Non-company Assessee Liable to Statutory Audit Under Any Other Law 34.10-2
S. No.
Note:
Tax audit checklist in the case of any non-company assessee NOT liable to statutory audit under any other law 34.10-3
S. No.
Particulars Yes/No/ N/A Comment
S. No.
Particulars
Yes/No/ N/A
Comment
S. No.
Cut-off Procedures:
Particulars
Yes/No/ N/A
Comment
S. No.
Particulars
Agreement with Control Account
Examination of Documentary Evidence
Classification of Trade Creditors/Trade Payables into Udyam-Registered MSEs and Others
Yes/No/ N/A
Comment
Schedule of creditors:
Para 34.10
S. No.
Particulars
Yes/No/ N/A
Comment b
Unusual payments around the Year-end
Subsequent transactions
Direct Confirmation Procedure/External Confirmation Procedure
The confirming party’s knowledge of the subject matter -
S. No.
Particulars
The ability or willingness of the intended confirming party to respond
The objectivity of the intended confirming party
CA Narayan Prasad Swami, In re
Yes/No/ N/A
Para 34.10
Comment
