Guide To Tax Audit, 2020 by SRINIVASAN ANAND G

This book provides a detailed commentary on provisions relating to Tax Audit and clauses of Form 3CD

The Present Publication is the 12th Edition, updated till 20^th September 2020, incorporating all the changes made by the following:

• The Finance Act 2020
• The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020

 

The key features of this book are as follows:

• Analysis of the audit requirement under Income tax provision;
•   An in-depth discussion on every clause of the tax audit report Form No. 3CA, 3CB and 3CD;
• Analysis of guidance note released by the ICAI on tax Audit.
• Contents of the book are as follows:

o   Section 44AB: Audit of accounts of certain persons carrying on business or profession

o   Persons carrying on business who are obliged to comply with provisions of Section 44AB as regards compulsory audit of accounts

o   Turnover-linked compulsory audit obligations u/s 44AB(a) on certain persons carrying on business

o   Compulsory audit obligations u/s 44AB(c)/(e) on certain persons carrying on business regardless of their turnover/gross receipts/ sales (non-turnover-linked-audit obligations)

o   Persons carrying on business who are exempt from tax audit (compulsory audit obligations) u/s 44AB

o   Presumptive tax regime under Section 44AD for eligible businesses carried on by resident individuals, HUFs & Firms

o   Presumptive tax regime u/s 44AE for assessees owning good, carriages and plying, hiring or leading them

o   When person carrying on profession is required to get his accounts audited u/s 44AB(b) & u/s 44AB(d)

o   Presumptive tax regime available under the act to persons carrying on specified professions

o   Turnover on gross receipts

o   Obligations cast by Section 44AB

o   Preparation of financial statements

o   Form No. 3CA

o   Form No. 3CB

o   Form No. 3CD

o   Clauses 1 to 3 and 5 to 7 | Routine particulars (Name, Address, PAN or Aadhar Number, Status, Previous Year, Assessment Year)

o   Clause 4 of Form No. 3CD | Registration under Indirect Tax Laws

o   Clause 8 of Form No. 3CD | Relevant clause of Section 44AB under which tax audit is applicable

o   Clause 9 of Form No. 3CD | Details regarding Firms/AOPs/LLPs

o   Clause 10 of Form No. 3CD | Nature of business/profession

o   Clause 11 of Form No. 3CD | Books of accounts

o   Clause 12 of Form No. 3CD | Presumptive income

o   Clause 13 of Form No. 3CD | Method of accounting & compliances

o   Clause 14 of Form No. 3CD | Method of stock valuation

o   Clause 15 of Form No. 3CD | Capital asset converted into stock-in-trade

o   Clause 16 of Form No. 3CD | Amounts not credit to profit and loss account

o   Property (Land or Building or Both) Transferred at less than stamp duty value – Clause 17 of Form No. 3CD

o   Clause 18 of Form No. 3CD | Depreciation

o   Clause 19 of Form No. 3CD | Amounts deductible under Sections 33AB, 33ABA, etc.

o   Clause 20 of Form No. 3CD | Bonus/employees contribution to PF

o   Clause 21 of Form No. 3CD | Amounts debited to profit and loss account

o   Clause 22 of Form No. 3CD | Amounts of interest inadmissible under Section 23 of MSME Act, 2006

o   Clause 23 of Form No. 3CD | Payments to persons specified under Section 40A(2)(b)

o   Clause 24 of Form No. 3CD | Amounts deemed to be profits and gains under Section 32AC/32AD/33AB/33ABA/33AC

o   Clause 25 of Form No. 3CD | Amounts deemed to be profits and gains under Section 41

o   Clause 26 of Form No. 3CD | Sums covered by Section 43B

o   Clause 27 of Form No. 3CD | CENVAT Credit/Input Tax Credit/Prior Period Items

o   Clause 28 of Form No. 3CD | Gifts of unlisted shares received by LLPs/Firms/Companies on or before 31-3-2017

o   Clause 29 of Form No. 3CD | Share premium received by closely held companies in excess of FMV taxable – Section 56(2)(viii)(b)

o   Clause 29A of Form No. 3CD | Amount chargeable under Section 56(2)(ix)

o   Clause 29B of Form No. 3CD | Gifts/deemed gifts chargeable under Section 56(2)(x)

o   Clause 30 of Form No. 3CD | Hundi transactions

o   Clause 30A of Form No. 3CD | Secondary transfer pricing adjustments

o   Clause 30B of Form No. 3CD | Thin capitalisation adjustments

o   Clause 31 of Form No. 3CD | Acceptance/repayment of loan/deposit/specified sum

o   Clause 32 of Form No. 3CD | Unabsorbed loss/depreciation

o   Clause 33 of Form No. 3CD | Chapter VI-A deduction

o   Clause 34 of Form No. 3CD | Audit of compliance with TDS provisions

o   Clause 35 of Form No. 3CD | Quantitative details

o   Clause 36 of Form No. 3CD | Dividend distribution tax

o   Clause 36A of Form No. 3CD | Deemed dividend u/s 2(22)(e)

o   Clause 37 of Form No. 3CD | Cost audit report

o   Clause 38 of Form No. 3CD | Central excise audit report

o   Clause 39 of Form No. 3CD | Service tax audit for valuation for services

o   Clause 40 of Form No. 3CD | Accounting ratios

o   Clause 41 of Form No. 3CD | Details of demands raised or refunds issued under tax laws

o   Clause 42 of Form No. 3CD | Furnishing of Form No. 61, 61A, and 61B

o   Clause 43 of Form No. 3CD | Furnishing of country by country report u/s 286

o   Clause 44 of Form No. 3CD | Break-up of total expenditure of entities registered or not registered under GST