Tax Audit (As amended by Finance Act 2023)

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Description
Also Incorporating
► Notes/Comments/disclaimers to be given regarding each clause of Form No. 3CD/3CA/3CB
► Practice pointers: Common errors in reporting detected by ICAI while
► ICAI's views in Guidance Note on Tax Audit under Section 44AB of the Income -scrutinizing tax audit reports
► Tax Audit Reckoner for            
     * Audit of loans, deposits and borrowings
     * Audit of share capital
     * Audit of sale of immovable property
     * Audit of cash transactions
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Table of Contents
Chapter O : Section 44ab: Audit Of Accounts Of Certain Persons Carrying On Business Or Profession
Chapter 1 :  Persons Carrying On Business Who Are Obliged To Comply With Provisions Of Section
                       44ab As Regards Compulsory Audit Of Accounts
Chapter 2 :  Turnover-Linked Compulsory Audit Obligations U/S 44ab(A) On Certain Persons Carrying
                        On Business
Chapter 3 :  Compulsory Audit Obligations U/S 44ab(C)/(E) On Cer- Tain Persons Carrying On Business
                        Regardless Of Their Turnover/Gross Receipts/Sales (Non-Turn- Over-Linked
                        Audit Obligations)
Chapter 4 : Persons Carrying On Business Who Are Exempt From Tax Audit (Compulsory Audit
                      Obligations U/S 44ab)
Chapter 5 : Presumptive Tax Regime Under Section 44ad Por Eligible Businesses Carried On By Resident
                      Indi Viduals, Hufs & Firms
Chapter 6 : Presumptive Tax Regime U/S Aae For Assessees Owning Goods Carriages And Plying, Hiring
                       Or Leasing Them
Chapter 7 : When Person Carrying On Profession Is Required To Get His Accounts Audited U/S 44ab(B) &
                       U/S 44ab(A)
Chapter 8 : Presumptive Tax Recomes Available Under The Act To Persons Carrying On Specified
                       Professions
Chapter 9 : Turnover Or Gross Receipts
Chapter 10 : Obligations Cast By Section 44ab Preparation Of Financial Statements
Chapter 11 : Preparation of Financial Statements
Chapter 12 : Form No. 3ca
Chapter 13: Form No. 3cb
Chapter 14 : Form No. 3cd
Chapter 15 : Name Of The Assessee
Chapter 16 : Address Of The Assessee
Chapter 17 Pan Or Aadhaar Number
Chapter 18 : Registrations Under Indirect Tax Laws (Clause 4)
Chapter 19 : Status (Clause 5)
Chapter 20 : Previous Year (Clause 6)
Chapter 21 : Assessment Year (Clause 7)
Chapter 22 : Clause 8 Of Form No.3cd Relevant Clause Of Section 44ab Under Which Tax Audit Is
                          Applicable
Chapter 23: Clause Sa Of Form No. 3cd : Whether The Asses See Has Opted For Taxation Under Section
                        115ba/115baa/115bab/115bac/115bad?
Chapter 24: Clause 9 Of Form No. 3cd : Details Regarding Firms/ Aops/Llps
Chapter 25 : Clause 10 Of Form No. 3cd : Nature Of Business/ Pro- Fession
Chapter 26 : Clause 11 Of Form No. 3cd : Books Of Account
Chapter 27 : Clause 12 Of Form No. 3cd : Presumptive Income
Chapter 28 : Clause 13 Of Form No. 3cd : Method Of Accounting & Compliances
Chapter 29 : Clause 14 Of Form No. 3cd : Method Of Stock Valuation
Chapter 30 : Clause 15 Of Form No. 3cd : Capital Asset Converted Into Stock-In-Trade
Chapter 31 : Clause 16 Of Form No. 3cd: Amounts Not Credited To Profit And Loss Account
Chapter 32 : Property (Land Or Building Or Both) Transferred At Less Than Stamp Duty Value -
                        Clause 17 Of Form No. 3cd
Chapter 33: Clause 18 Of Form No. 3cd : Depreciation
Chapter 34 : Clause 19 Of Form No. 3cd : Amounts Deductible Un. Der Sections 33ab, 33aba, Etc.
Chapter 35 : Clause 20 Of Form No. 3cd : Bonus/Employees Con- Tribution To Pf
Chapter 36 : Clause 21 Of Form No. 3cd : Amounts Debited To Profit And Loss Account
Chapter 37 : Clause 22 Of Form No. 3cd : Amount Of Interest In Admissible Under Section 23 Of
                         Msmed Act, 2006
Chapter 38 : Clause 23 Of Form No. 3cd : Payments To Persons Specified Under Section 40a(2)(B)
Chapter 39 : Clause 24 Of Form No. 3cd : Amounts Deemed To Be Profits And Gains Under Section
                         32ac/32ad/33ab/ 33aba/33ac
Chapter 40 : Clause 25 Of Form No. 3cd : Amounts Deemed To Be Profits And Gains Under Section 41
Chapter 41 : Clause 26 Of Form No.3cd: Sums Covered By Section 43b
Chapter 42 : Clause 27 Of Form No. 3cd : Cenvat Credit/ Input Tax Credit (Itc)/Prior Period Items
Chapter 43 : "Gifts' Of Unlisted Shares Received By Llps/ Firms/Companies On Or Before 31-3-2017 -
                           Clause 28 Of Form No. 3cd
Chapter 44 : Share Premium Received By Closely Held Com- Panies In Excess Of Fmv Taxable - Section
                         56(2)(Viib) Clause 29 Of Form No. 3cd
Chapter 45 : Amount Chargeable Under Section 56(2)(Ix) - Clause 29a
Chapter 46 : Gifts/Deemed Gifts Chargeable Under Section 56(2)(X) - Clause 29b
Chapter 47 : Hundi Transactions - Clause 30 Of Form No. 3cd
Chapter 48 : Clause 30a Of Form No. 3cd : Secondary Transfer Pricing Adjustments
Chapter 49: Clause 30b Of Form No. 3cd : Thin Cap Adjustments
Chapter 50 : Gaar (General Anti Avoidance Rules)
Chapter 51 : Clause 31 Of Form No. 3cd : Acceptance/RepaymentOf Loan/Deposit/Specified Sum
Chapter 52: Clause 32 Of Form No. 3cd : Unabsorbed Loss/ Depreciation
Chapter 53 : Clause 33 Of Form No. 3cd : Chapter Vi-A Deductions
Chapter 54 : Clause 34 Of Form No.3cd: Audit Of Compliance With Tds Provisions
Chapter 55 : Clause 35 Of Form No. 3cd : Quantitative Details
Chapter 56 : Clause 36 Of Form No.3cd:Dividend Distribution Tax
Chapter 57 : Clause 36a Of Form No. 3cd : Deemed Dividend U/S 2(22)(E)
Chapter 58 : Clause 37 Of Form No. 3cd : Cost Audit Report
Chapter 59 : Clause 38 Of Form No. 3cd : Central Excise Audit Report
Chapter 60 : Clause 39 Of Form No. 3cd : Service Tax Audit For Valuation For Services
Chapter 61 : Clause 40 Of Form No. 3cd : Accounting Ratios
Chapter 62 : Details Of Demands Raised Or Refunds Issued Under Tax Laws : Clause 41 Of Form
                         No. 3cd
Chapter 63 : Clause 42 Of Form No. 3cd : Furnishing Of Form Nos. 61, 61a And 61b
Chapter 64 : Clause 43 Of Form No. 3cd : Furnishing Of Country By Country Report (Cbcr) U/S 286
Chapter 65 : Clause 44 Of Form No. 3cd : Break-Up Of Total Expen. Diture Of Entities Registered Or
                         Not Registered Under Gst
Chapter 66 :   Finance Act, 2023 amendments to key provisions of the act affecting Tax Audit with
                         effect from AY 2024-2025
Appendix : Relevant Rule Of Income-Tax Rules, 1962
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Author Details
Srinivasan Anand G, is a Practicing Chartered Accountant. He has qualified in the exams of all three premier professional institutes, i.e. ICAI, ICWAI & ICSI. He is associated as a guest faculty with various institutes such as Regional Training Institute, Comptroller & Auditor General of India, Western Coalfields Ltd., Punjab National Bank, and Zonal Training Centre. He has also spoken at Study Circle Meetings organized by the Nagpur Branch of ICAI.