How many clauses are there in tax audit report?

How many clauses are there in tax audit report?

There are total 41 clauses in Form 3CD (divided in Part A and Part B) containing disclosures related to loans, deductions, TDS paid etc. In the end, the Form specifies the name, address, membership number, FRN no and signature of the auditor with stamp/seal.

What is Clause 44 of Form 3CD?

Section 44AB of the Income-tax Act, 1961 (‘the Act’) read with rule 6G of the Income-tax Rules, 1962 (‘the Rules’) requires specified persons to furnish the Tax Audit Report along with the prescribed particulars in Form No. 3CD. The existing Form No. 3CD was amended vide notification no.

What is clause 30c of Form 3CD?

Requirement: This clause requires the assessee to give the following details of borrowings on Hundi or repayment thereof, otherwise, than through an account payee cheque, it also requires to comply with provisions of section 69d of the income tax act.

What is Clause 34 of Form 3CD?

Clause 34 of the Tax Audit Report (Form 3CD) requires Tax Auditors to comment on the overall Tax Deducted at Source (TDS) compliances by the tax payers. In accordance with the guidelines issued by ICAI on this clause, the auditors ask for a reconciliation of Financial statements with the TDS returns.

What is Clause 26 in tax audit?

In clause 26(i)(A), an auditor is required to report the payment status of the liability that is already existing on the first day of the previous year and was not allowed in the assessment of any preceding previous years.

What is Clause 16 of Form 3CD?

Sir, Clause 16 is about “Amounts not credited to Profit and Loss Account” and Sub Clause (d) “any other item of income”. Does this Clause 16(d) means any income which is not credited to Profit and Loss Account needs to be reported.

What is section 41 of Income Tax Act?

Income Tax – Section 41(1) provides for taxing any amount benefit which was obtained by a person with respect to any loss, expenditure or trading liability incurred in any earlier Assessment Years.

What is section 28 of Income Tax Act?

—Where speculative transactions carried on by an assessee are of such a nature as to constitute a business, the business (hereinafter referred to as “speculation business”) shall be deemed to be distinct and separate from any other business.

What is Section 94B?

Section 94B of the Income Tax Act of 1961 provides the provisions for the restriction of interest payments made by a company in India or a foreign company that is permanently set up in India to its Associated Enterprise that is established abroad.

What is Clause 27 of Form 3CD?

In Clause 27(a) of 3CD amount of Central Value Added Tax credits availed of or utilised during the previous year and its treatment in the profit and loss account and treatment of outstanding Central Value Added Tax credits in the accounts is to be reported.

Is GST allowed as expense?

The interest paid on arrears of GST and outstanding balance of GST is compensatory and hence allowed as deduction. 4. The penalty paid for non-payment of GST within the prescribed time ,is not deductible as expenditure.

What is Section 14A?

“14A. Expenditure incurred in relation to income not includible in total income. —For the purposes of computing the total income under this Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this Act.”.

What is Section 40b?

Section 40b determines the maximum amount of remuneration and interest on capital payable to a partner under Income Tax Act. The amount over the specified limit is not allowed as a deduction to a partnership firm.

What is TDS 192b?

When is TDS Deducted under Section 192. Under Section 192, TDS is deducted at the time of actual payment of salary and not during the accrual of salary. It means tax will be deducted if your employer pays salary in advance or at the time of salary payment in arrears.

What is Section 73a?

(1) 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.