THE CBDT AMENDS RULE 6G AND REVISES TAX AUDIT FORM 3CD

The CBDT has updated Tax Audit Form 3CD and made changes to Rule 6G.

The Central Board of Direct Taxes [CBDT] has amended Rule 6G and Tax Audit Form [Form 3CD]. According to the notification, the assessee may now revise form 3CD if a recalculation of disallowance under section 40 or section 43B is needed.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 1st April 2021
(INCOME-TAX)

246 G.S.R. (E). –– The Central Board of Direct Taxes hereby makes the following rules to amend the Income-tax Rules, 1962, in the exercise of the powers conferred by section 44AB read with section 295 of the Income-tax Act (43 of 1961):

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1. A brief title and introduction.–

(1)The Income-tax (eighth Amendment) Rules, 2021 can be used to refer to these regulations.
(2) They will take effect on the day they are published in the Official Gazette.

The Income-tax Rules of 1962 state that:

(a) After sub-rule (2) in rule 6G, the following sub-rule shall be inserted:

“(3) The person may revise the report of audit furnished under this rule by obtaining a revised report of audit from an accountant, duly signed and checked by such accountant, and furnishing it before the end of the relevant assessment year for which the report pertains, if there is payment by such person after furnishing the report under subrules (1) and (2) that necessitates a recalculation

(b) in Appendix II, in Form 3CD,-

I in PART –A, clause 8A shall be replaced by the following clause: – “8A “Has the assessee chosen to be taxed under section 115BA/115BAA/115BAB/115BAC/115BAD?

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(ii) in PART-B, the following clause shall be substituted for clause 17:

“17. Where any land or building, or both, has been transferred for a consideration less than the value adopted, assessed, or assessable by any authority of a State Government referred to in section 43CAor 50C during the previous year, please report it.

audit form

(iii) The following sub-clauses shall be substituted for sub-clauses (ca) and (cb) in clause 18, namely:

“(ca) Written down value adjustment made under section 115BAC/115BAD (for the assessment year 2021-2022 only)……

(cb) Adjustment to the written down value of an intangible asset due to the exclusion of the value of a company or profession’s goodwill…..

(cc) Wrongly written down value…….”;

(iv) in clause 32, the following sub-clause shall be substituted for sub-clause (a):

(a) To the extent practicable, specifics of the carried forward loss or depreciation allowance, as follows:

audit forms

*Take the assessed depreciation if the assessed depreciation is less and there is no appeal pending.

To be completed only for the evaluation year 2021-2022.”

Clause 36 is to be omitted.

Note: The principal rules were first published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) on March 26, 1962, and were last amended on March 31, 2021, by notification number G.S.R. 242 (E).

[Notification No. 28 /2021/F. No 370142/9/2018-TPL]
ANKIT JAIN, Under Secy. (Tax Policy Legislation)

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2020 Budget Expectations

2020 Budget Expectations

Some of the steps may include:
i) Lower Personal income tax rates (either by way of rationalizing tax slabs or raising
exemption limits).
ii) Removing Long Term Capital Gains Tax.
iii) Sector specific import duty tweaks for promoting domestic manufacturing.
iv) The government could revisit the plan for overseas issuance of sovereign bonds, to address
some of these issues.

Budget 2020:Senior Citizen Savings Scheme

Demand increases for a full income tax rebate under the Senior Citizen Savings Scheme

Budget 2020: Finance Minister Nirmala Sitharaman will present her second Union budget on 1 February 2020. It will have a dual challenge in this budget— to boost the economy and give the middle class tax relief. In order to hit multiple sparrows with a single arrow, Nirmala Sitharaman may increase income tax benefits under Section 80C and Section 80CCD.

There are nearly 41 million senior citizens in the country with a combined investment of Rs 14 Lakh Crores or 7% of India’s GDP. The average amount of deposits per account is around Rs 3.3 lakh and the interest income from such deposits is 5.5 per cent of the Private Final Consumption Expenditure for FY19. It is imperative that the Government exclude certain interest income from taxes or increasing the threshold.

The basic exemption for senior citizens in Rs 3 Lakhs is too poor. This needs to be increased to at least Rs 5 Lakhs per year.

Government has a very good scheme for senior citizens. Under the Senior Citizens Savings Scheme (SCSS), a senior citizen can deposit Rs 15 lakh and the current interest rate is 8.6%. Nevertheless, the interest on the SCSS is completely taxable, which is a major drawback to the scheme (the amount of interest on the Rs 1 lakh deposit for 5 years is approximately Rs 51,000 which is taxable)