Changes in the tax audit report for AY 2021-22

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Changes in the tax audit report for AY 2021-22

Changes in the tax audit report for AY 2021-22

CBDT vide notification no 28/2021/F.No 370142/9/2018-TPL dated 01st April 2021, made certain amendments in the Tax Audit Form [Form 3CD]. Point-wise summary of the notification and amendments is as under: 

1. New sub-rule 3 has been inserted in the rule 6G of the Income Tax Rules, 1962. As per the sub-rule, now assessee can revise tax audit report form 3CD where there is payment by assessee after furnishing of tax audit report, which necessitates recalculation of disallowance under section 40 or section 43B.

2. In the form 3CD in Part A clause 8A substituted with , "8A- Whether the assessee has opted for taxation under section 115BA/115BAA/115BAB/ 115BAC/115BAD?"

3. In the form 3CD in Part B clause 17 substituted, namely,

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

Changes in the tax audit report for FY 2020-21

In the existing clause 17, applicability of second proviso to the section 43CA (1) or fourth proviso to clause x of 56(2) required to report. i.e., variation between sale consideration and stamp duty value can be up to 20% in case of transfer of residential unit. 

What is second proviso to section 43CA (1)?

Finance Act 2021, inserted second proviso to section 43CA (1) namely-

(a) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:––

‘Provided further that in case of transfer of an asset, being a residential unit, the provisions of this    proviso shall have the effect as if for the words “one hundred and ten per cent.”, the words “one hundred and twenty per cent.” had been substituted, if the following conditions are satisfied, namely:––

(i) the transfer of such residential unit takes place during the period beginning from the 12th day of November, 2020 and ending on the 30th day of June, 2021;

(ii) such transfer is by way of first time allotment of the residential unit to any person; and

(iii)the consideration received or accruing as a result of such transfer does not exceed two crore rupees.’;

4.in clause 18, for sub-clauses (ca) and (cb), the following sub-clauses, shall be substituted namely:-

(ca) Adjustment made to the written down value under section 115BAC/115BAD (for assessment year 2021-2022 only)……

(cb) Adjustment made to written down value of Intangible asset due to excluding value of goodwill of a business or profession…..

(cc) Adjusted written down value……….”;

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

(a) Details of brought forward loss or depreciation allowance, in the following manner, to the extent available:revision in the tax audit report for AY 2021-22*Col No 4 :If the assessed depreciation is less and no appeal pending then take assessed.
^Col No 4 :To be filled in for assessment year 2021-2022 only.’’

6. Clause 36 shall be omitted. i.e., information w.r.t dividend distribution tax.

It is pertinent to note that, CBDT has further extended the implementation of reporting requirements under clause 30C & 44 has  till March 31st, 2022 vide Circular No. 05/2021, Dated 25th March, 2021

#Read full text of the notification here:

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