Tax Audit Report and Form 3CA, 3CB & 3CD

Tax Audit Report based on Section 44AB:

The tax audit as specified under section 44AB must be carried out by a Chartered Accountant who holds a full time Practice Certificate. Tax Audit ensures the correctness of the Account Book managed by taxpayers and income is calculated in accordance with the provisions of the Income Tax Act. The tax audit report is completed in Form no. 3CA / 3CB & Form no. 3CD.

When is Form No. 3CA equipped?

Tax audit report in Form no. 3CA must be completed when the party assessed is required to get its account audited under any law other than the Income Tax law. Form no. 3CA is given by a Chartered Accountant after the completion of the Audit. This form must be submitted along with Form no. 3CD.

Details to complete in Form no. 3CA: –

1. Details of assessed items such as Name, Address, PAN etc.,

2. Date of Audit Report,

3. Attachments (Audited Balance Sheet, Profit and Loss Account, Form 3CD),

4. Statement by the auditor that all details are filled in Form no. 3CA and annexure are installed according to their knowledge,

5. Audit of observations and qualifications found in the form of 3CD,

6. Auditor Name, Address, Membership Number, FRN No. And a signature with a stamp / stamp.

When is Form No. 3CB Equipped?

Audit report in Form no. 3CB is required to be completed if the appraisal book does not need to be audited based on other laws (ie laws other than the income tax law).

Details to be completed in 3CD form: –

1. Details of appraiser namely Name, address, PAN;

2. Date of audit report;

3. Attachments (Balance Sheet, Profit and Loss Account, Form 3CD)

4. Statement by the auditor that they have obtained all the information needed for the Audit;

5. Reporting detailed observations, non-conformities mentioned in the form of 3CD;

6. A statement that the account is stored at the branch office and head office;

7. A statement that the details filled in by the auditor are in accordance with their knowledge;

8. Auditor Name, Address, Membership No, FRN No. And a signature with a stamp / stamp

What is Form No. 3CD?

Form No. 3CD is a format in which special statements from tax audits must be completed. This form has a total of 44 clauses in which the auditor must report various matters contained in it.

Form No. 3CD is divided into two parts, Part A and Part B, where;

A. Part A includes basic factual details about the person and

B. Part B requires information on various types of compliance under the provisions of the Income Tax Act.

What is the due date to provide a Tax Audit Report?

The due date for filing the Tax Audit Report based on section 44AB is September 30 of the relevant Year of the previous Year. However, if the appraiser is asked to submit a report relating to certain domestic or domestic transactions based on section 92E, then the due date for filing a Tax Audit Report is 30 November from the relevant Year of Assessment.

Non-filing tax audit reports attract criminal consequences where the penalty imposed is 0.5% of gross turnover / revenue or Rs. 1.5 Lakh, whichever is lower. However, punishment will not be imposed if the failure is caused by a reasonable reason.

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