Changes in Form 3CD in 2014-15
Knowledge and understanding of the rules and regulations of filing income tax is something that all of us should have. However, most people are overwhelmed with the myriad sections, forms, clauses, etc. they have to keep in mind while filing their income tax returns. Thankfully, technology has again come to our rescue and now there are numerous taxation software which have made the process of filing income tax returns easier. In this article, we will talk about the changes made by the Central Board of Direct Taxes (CBDT) regarding Form 3CD.
New Form 3CD
The existing Form 3CD has been substituted with a new one. In the new Form 3CD, a number of new reporting clauses have been incorporated. Changes have also been made to the existing clauses. All this has been done to ensure that more detailed information is filled out by the auditor in the tax audit report.
One of the major differences between old Form 3CD and new Form 3CD is that in the latter, the auditor has to also include all disallowed payments irrespective of whether they are debited to profit and loss account or not. In the earlier Form 3CD, only those inadmissible payments debited from profit and loss accounts had to be included in the report. There are a number of other changes that tax auditors will need to keep in mind while preparing income tax returns for their clients. Thankfully, with the help of advanced Form 3CD software, this tedious task becomes a lot more simpler and easier. Mentioned below are some other reporting requirements regarding the new Form 3CD.
1. Entities liable to pay excise duty, customs duty, or other indirect taxes have to mention their registration number or any other ID number that has been given to them.
2. The new Form 3CD requires the auditor to submit the details of the address where books of account of the entity have been kept.
3. The tax auditor has to report the nature of documents that have been assessed.
4. In the new Form 3CD, the tax auditor has to specify the details of the land or building transferred by the assesse if the value is less than the stamp duty value.
5. In the revised Form 3CD, deductions that are permissible under sections 32AC, 35AD, 35CCC and 35DDD have to be reported as well.
6. The tax auditor will have to report all unlisted shares that were received by the assesse for inadequate consideration or without consideration of of section 56(2)
These were a few clauses that have been added to the new Form 3CD and audit report format. We hope that the information we have presented here is beneficial to you.
New Form 3CD
The existing Form 3CD has been substituted with a new one. In the new Form 3CD, a number of new reporting clauses have been incorporated. Changes have also been made to the existing clauses. All this has been done to ensure that more detailed information is filled out by the auditor in the tax audit report.
One of the major differences between old Form 3CD and new Form 3CD is that in the latter, the auditor has to also include all disallowed payments irrespective of whether they are debited to profit and loss account or not. In the earlier Form 3CD, only those inadmissible payments debited from profit and loss accounts had to be included in the report. There are a number of other changes that tax auditors will need to keep in mind while preparing income tax returns for their clients. Thankfully, with the help of advanced Form 3CD software, this tedious task becomes a lot more simpler and easier. Mentioned below are some other reporting requirements regarding the new Form 3CD.
1. Entities liable to pay excise duty, customs duty, or other indirect taxes have to mention their registration number or any other ID number that has been given to them.
2. The new Form 3CD requires the auditor to submit the details of the address where books of account of the entity have been kept.
3. The tax auditor has to report the nature of documents that have been assessed.
4. In the new Form 3CD, the tax auditor has to specify the details of the land or building transferred by the assesse if the value is less than the stamp duty value.
5. In the revised Form 3CD, deductions that are permissible under sections 32AC, 35AD, 35CCC and 35DDD have to be reported as well.
6. The tax auditor will have to report all unlisted shares that were received by the assesse for inadequate consideration or without consideration of of section 56(2)
These were a few clauses that have been added to the new Form 3CD and audit report format. We hope that the information we have presented here is beneficial to you.
