What is the purpose of form 3CD?

Form 3CD is prepared by a Chartered Accountant on behalf of the assessees who get their accounts audited. The objective of the form is to specify the particulars of the audit report under any of the forms specified under Section 44AB.

What is the form 3CD?

Form 3CD is a 41-points detailed statement of particulars. All the details related to various aspects of the business and transactions have to be filled at appropriate places. A detailed explanation of each point of Form 3CD can be seenhere.

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 form 3CA 3CB and 3CD?

Form 3CA, 3CB and 3CD are basically prescribed forms that auditors use to present tax audit reports. In Section 44AB, the class of individuals or taxpayers that are required to get their accounts audited from a relevant chartered account are given, along with the rules and regulations.

Is form 3CD mandatory?

3CD. In the case of those persons who are covered under the previous FAQ that is who are necessarily required to get their accounts audited by or under any other law, the form that is prescribed for audit report is Form No. 3CA​ and the aforesaid particulars are to be reported in Form No.

Is form 3CA mandatory?

S.No. Tax Audit report in Form No. 3CA is applicable, where a person having business/profession, is required to get its accounts audited under any law (eg, Statutory Audit under the Companies Act, 2013/LLP Act, 2008).

What is form no 3CB?

Form 3CB is an audit report that is furnished by a professional CA on the behalf of the tax assessee who is working as a self-employed professional or carrying out a business. The assessee undergoing audit has to obtain the report in Form 3CB on or before September 30 of the applicable assessment year.

Is 3CD compulsory?

3CD. In the case of those persons who are covered under the previous FAQ that is who are necessarily required to get their accounts audited by or under any other law, the form that is prescribed for audit report is Form No. 3CA​ and the aforesaid particulars are to be reported in Form No. 3CD.

Who is eligible for tax audit?

Context: “As per section 44AB of the Income Tax Act,1961, any person carrying the business is required to get his books of accounts audited if the gross receipts/turnover exceeds ₹1 crore during the year (In case of presumptive taxation u/s 44AD, the threshold limit is ₹2 crore).

Is tax audit compulsory for companies?

Tax Audit is required if the annual turnover of the company is Rs 1 crore or more. Tax Audit is filed by a Chartered Accountant. 6. Tax Compliances : Depending on the company, it may be required to obtain several Tax Registrations such as GST, ESI, EPF, Professional Tax, Excise Registration etc.

What is difference between 3CA and 3CD?

While audit requirement is compulsory requiring submission of Form 3CA, no such mandatory requirement exists in case of Form 3CB. The main difference between Form 3CA and Form 3CD on the other hand, is related to the fact that Form 3CD is a very detailed statement of accounts used as supporting document for Form 3CA.

Can you go to jail for tax audit?

The IRS is not a court so it can’t send you to jail. To go to jail, you must be convicted of tax evasion and the proof must be beyond a reasonable doubt. That is, the IRS must first present your situation to the Justice Department.

What do you need to know about Form 3CD?

The Form is a part of the process of filing Income Tax Returns in India and is an Annexure to the Audit Report. Form 3CD contains 32 Clauses. It is required to be attached with Forms 3CA or 3CB, as applicable. The Form 3CD is to be by the Tax Auditor and then submitted to the Tax Auditing Authority.

What is Form 3CD for income tax in India?

Form 3CD is a format of the Audit Report required to be filed by Tax Auditors of a certain section of Assessees in India. The Income Tax Department of India clearly lays down the rules associated with the use of this form.

What is Form 3CA, 3CB, 3CD Tax Audit Report?

Tax Audit Report – Form 3CA, 3CB, 3CD, 3CE The format of the Audit Report is specified by the Income Tax Department with specified particulars. Form 3CA and 3CB is the statement with auditors’ information while form 3CD is the statement with details of the tax audit. Due Date to Upload Tax Audit Report

How many clauses are in Form 3CD report?

The auditor may have various differences of opinion with regards to auditee`s financial statements. These differences are to be pointed out individually under various heads of 3CD report. This form contains 32 clauses and the auditor has to report extensively on various points. It needs to be annexed with the either form 3CA or 3CB as appropriate.