E- Governance

UNIT -) 02
E-governance Compliance in Direct Taxes:

1. Procedure for registration for online portal of Income Tax; Procedure

for e-filing of Income Tax Returns; Various types of forms of income
tax return; E-verification of Income Tax Returns, E- payment of
Income Tax: Due Dates; Various Challans for E-payment of Income
Tax.
2. E-filing of audit Report: Various forms of Audit Report:3CA, 3CB,
annexures to Audit Report 3CD.

E-governance Compliance in Direct Taxes:

The application of information technology and communication for the purpose of

governance is commonly known as e-governance. Through e-governance, information can be distributed to
the public in a transparent manner.

The revolution in Information and communications Technology (IcT) has brought a

whole new agenda for governance into the realm of possibility. e-Governance comprises decisional processes
and the use of IcT for wider participation of citizens in public affairs. citizens are participants in e-
Governance. The purpose of implementing e-Governance is to improve governance processes and outcomes
with a view to improving the delivery of public services to citizens..
India, being the largest democracy in the world, has much to gain from e-Governance, especially when
citizen participation in governance is one of the features of the fully evolved stage of e-government. Many e-
readiness assessments have been carried out at the global level that show the current state of India’s e-
readiness.

The four pillars of e-Government are:#

• People
• Process
• Technology
• Resources

Procedure for registration for online portal of Income Tax

Registration of Taxpayer on e-Filing website

1) Prerequisite for Individual Users

Before taxpayers start registration, ensure the following details should be hand-in-hand.
1. Valid PAN
2. Valid Mobile Number
3. Valid Current Address
4. Valid Email Address, preferably your own

Registration Process
Perform the following steps to register as an 'Individual User':
1. Visit the ‘e-Filing’ Portal https://www.incometax.gov.in
2. Click ‘Register Yourself' button located at right side of the Home Page.
3. Select the user type as ‘Individual’. Click Continue

4. Provide the following basic details:

o PAN
o Surname, First Name and Middle Name
o Date of birth
o Residential Status

5. Click ‘Continue’

6. Fill in the following mandatory details:

o Password Details
o Contact Details
o Current Address
o Click ‘Submit’

7. After registration,
For Residents, a six digit OTP1 and OTP2 will be shared on your mobile number and email ID, specified at
the time of registration.
For Non-residents, OTP will be shared on your primary email ID, specified at the time of registration.

8. Enter the correct OTP to complete the registration process

2) Prerequisite for HUF

The user must have the following mandatory details:

1. Valid PAN Card
2. Valid Mobile Number
3. Valid Email Address, preferable belonging to KARTA*

*Karta means senior most male member in the family. He is the person who takes care of day to day
expenses of the family looks after the family and protects the joint family properties. No outsider or stranger
can become a Karta.

Registration Process
Perform the following steps to register as a ‘HUF User’:
1. Visit the ‘e-Filing’ Portal https://www.incometax.gov.in
2. Click ‘Register Yourself’ button located at right side of the Home Page.
3. Select the user type as ‘Hindu Undivided Family (HUF)’. Click Continue
4. Provide PAN of the HUF*’, ‘Name of HUF*’, and ‘Date of Incorporation*’
5. Click ‘Continue’

6. Fill in the following details:

o Password Details
o PAN Details of Karta
o Contact Details of Karta
o Address of HUF
o Click ‘Submit’
7. After registration,
For Residents, a six digit OTP1 and OTP2 will be shared on your mobile number and email ID, specified at
the time of registration.
For Non-residents, OTP will be shared on your primary email ID, specified at the time of registration.

8. Enter the correct OTP to complete the registration process

3) Other than Individual and HUF

The user must have the following mandatory details:

1. Valid PAN Card
2. Valid Mobile Number
3. Valid Email Address, preferably belonging to Principal contact person

Registration Process

Perform the following steps to register as an ‘Other than Individual and HUF User’:
1. Visit the ‘e-Filing’ Portal https://www.incometax.gov.in
2. Click ‘Register Yourself’ button located at right side of the Home Page.

3. Select the 'User Type' as ‘Other than individual/HUF’ and select the 'Sub-User type' as per the PAN.
o Company
o Body of Individuals (BOI)
o Local Authority
o Firm
o Trust
o Association of Persons (AOP)
o Artificial Juridical Person
o Government
o Click Continue

4. Provide ‘PAN of the Organisation/Entity*’, ‘Organisation Name*’, ‘Date of Incorporation*’.

In case of ‘Company’ user, select the ‘Type of company’
5. Click ‘Continue

6. Fill in the following details:

o Password Details
o Personal Details of Principal Contact
o Contact Details of Principal Contact
o Address of Organisation/Entity
o Click ‘Submit’

7. After registration,
For Residents, a six digit OTP1 and OTP2 will be shared on your mobile number and email ID, specified at
the time of registration.
For Non-residents, OTP will be shared on your primary email ID, specified at the time of registration.

8. Enter the correct OTP to complete the registration process

 Procedure for e-filing of Income Tax Returns

e-Filing of ITR
e-Filing of ITR

The user can file the Income Tax Return (ITR) in two ways:

1. Offline: Download the applicable ITR, fill the form offline, save the generated XML file and then
upload it.
To e-File the ITR using the upload XML method, the user must download either of the following ITR utility:
 Excel Utility
 Java Utility

Perform the following steps to download the Java Utility or Excel Utility, then to generate and Upload the
XML:
1. Go to the Income Tax e-Filing portal www.incometax.gov.in
2. Download the Appropriate ITR utility under 'Downloads > IT Return Preparation Software'.
3. Extract the downloaded utility ZIP file and Open the Utility from the extracted folder. (For more
information and prerequisites, refer the 'Read me' document).

Note : System Requirements

Excel Utilities: Macro enabled MS-Office Excel version 2007/2010/2013 on Microsoft Windows 7 / 8 /10
with .Net Framework (3.5 & above)
Java Utilities: Microsoft Windows 7/8/10, Linux and Mac OS 10.x with JRE (Java Runtime Environment)
Version 8 with latest updates.
To Enable Macros in Excel Go to > File > Options > Trust Centre > Trust Centre Settings > Macro Settings
> Enable All Macro > Click ‘OK’ button twice to save these settings.

4. Fill the applicable and mandatory fields of the ITR form.

Note :
Pre-filled XML can be downloaded post login to the e-Filing portal from 'My Account > Download Pre-
Filled XML' and can be imported to the utility for prefilling the personal and other available details.

5. Validate all the tabs of the ITR form and Calculate the Tax.
6. Generate and Save the XML.
7. Login to e-Filing portal by entering user ID (PAN), Password, Captcha code and click 'Login'.
8. Click on the 'e-File' menu and click 'Income Tax Return' link.

9. On Income Tax Return Page:

o PAN will be auto-populated
o Select 'Assessment Year'
o Select 'ITR form Number'
o Select 'Filing Type' as 'Original/Revised Return'
o Select 'Submission Mode' as 'Upload XML'

10. Choose any one of the following option to verify the Income Tax Return:
o Digital Signature Certificate (DSC).
o Aadhaar OTP.
o EVC using Prevalidated Bank Account Details.
o EVC using Prevalidated Demat Account Details.
o Already generated EVC through My Account  Generate EVC Option or Bank ATM. Validity
of such EVC is 72 hours from the time of generation.
o I would like to e-Verify later. Please remind me.
o I don’t want to e-verify this Income Tax Return and would like to send signed ITR-V through
normal or speed post to "Centralized Processing Center, Income Tax Department, Bengaluru – 560500".

11. Click 'Continue'

12. Attach the ITR XML file.

On choosing,
o DSC as verification option, Attach the signature file generated from DSC management utility.
o Aadhaar OTP as verification option, Enter the Aadhaar OTP received in the mobile number
registered with UIDAI.
o EVC through Bank account, Demat account or Bank ATM as verification option, Enter the
EVC received in the mobile number registered with Bank or Demat Account respectively.
o Other two verification options, the ITR will be submitted but the process of filing the ITRs is
not complete until it is verified. The submitted ITR should be e-Verified later by using 'My Account > e-
Verify Return' option or the signed ITR-V should be sent to CPC, Bengaluru.

13. Submit the ITR.

14. To view the uploaded ITRs

2. Online: Enter the relevant data directly online at e-filing portal and submit it. Taxpayer can file ITR
1 and ITR 4 online.

1. Go to the Income Tax e-Filing portal, www.incometax.gov.in

2. Login to e-Filing portal by entering user ID (PAN), Password, Captcha code and click 'Login'.
3. Click on the 'e-File' menu and click 'Income Tax Return' link.
4. On Income Tax Return Page:
o PAN will be auto-populated
o Select 'Assessment Year'
o Select 'ITR Form Number'
o Select 'Filing Type' as 'Original/Revised Return'
o Select 'Submission Mode' as 'Prepare and Submit Online'
5. Click on 'Continue'
6. Read the Instructions carefully and Fill all the applicable and mandatory fields of the Online ITR
Form.

Note :
To avoid loss of data/rework due session time out, Click on ‘Save Draft’ button periodically to save the
entered ITR details as a draft. The saved draft will be available for 30 days from the date of saving or till the
date of filing the return or till there is no change in the XML schema of the notified ITR (Whichever is
earlier).
7. Choose the appropriate Verification option in the 'Taxes Paid and Verification' tab.
Choose any one of the following option to verify the Income Tax Return:
8. I would like to e-Verify
9. I would like to e-Verify later within 120 days from date of filing.
10. I don't want to e-Verify and would like to send signed ITR-V through normal or speed post to
"Centralized Processing Center, Income Tax Department, Bengaluru - 560 500" within 120 days from date of
filing.
11. Click on 'Preview and Submit' button, Verify all the data entered in the ITR.
12. 'Submit' the ITR.
13. On Choosing 'I would like to e-Verify' option, e-Verification can be done through any of the
following methods by entering the EVC/OTP when asked for.
 EVC generated through bank ATM or Generate EVC option under My Account
 Aadhaar OTP
 Prevalidated Bank Account
 Prevalidated Demat Account

Note
On Choosing the other two verification options, the ITR will be submitted but the process of filing the ITRs
is not complete until it is verified. The submitted ITR should be e-Verified later by using 'My Account > e-
Verify Return' option or the signed ITR-V should be sent to CPC, Bengaluru.
14. The EVC/OTP should be entered within 60 seconds else, the Income Tax Return (ITR) will be auto-
submitted. The submitted ITR should be verified later by using 'My Account > e-Verify Return' option or by
sending signed ITR-V to CPC.
15. To view the uploaded ITRs .

Various types of forms of income tax return

ITR-1
 Also known as the Sahaj form, this income tax return form is to be filed solely by an
individual taxpayer. Any other assesse liable to pay tax, is not eligible to avail of this form for filing their
returns. This form is applicable for the following people:
 A person who earns his income via salary or through other means such as pension
 A person who earns his livelihood from a single housing property
 An individual who has no income from no other business or who have no income from the sale of any
assets i.e. capital gains
 Individuals who do not own any assets or property in countries apart from India
 An individual who has no source of income from any country outside India
 A person whose income from agriculture is below Rs. 5,000
 A person whose source of income is from various investments or sources like investments, schemes
or fixed deposits etc.
 Individuals who have not earned income from any windfall such as lotteries, horse racing etc.
 People who want to accumulate their spouse’s or underage child’s income with their own, as long as
the income to be clubbed is in accordance with the criteria mentioned above.

ITR-2A
Introduced in the assessment year 2015-16, The ITR-2A form is a new income tax return
form. This form can be used by a Hindu Undivided Family (HUF) or an individual taxpayer. The ITR-2A
form is applicable for the following people:
 People whose source of income i through salary or through means such as pension
 People who are also earning income from more than one housing property
 A person who has no income from any other business or who have no income from the sale of any
assets i.e. capital gains
 People who tend to earn income from different investments or sources such as Fixed Deposits,
Investments, Shares etc.
 A person who does not own any property or assets in countries other than India
 A person who does not have a source of income from any country outside India
 A person whose income from agriculture is below Rs 5,000
 Individuals who have not earned income from any windfall such as lotteries or horse racing

ITR-2
The ITR-2 Form is a type of ITR form which is generally used by individuals who have
accrued income through the sale of assets or property. Also, this form is useful for individuals who earn
income from countries outside India. In most cases, individuals or Hindu Undivided Families (HUF) can
avail of this form to file their IT returns. This form is applicable for the following persons:
 People who earn income through salary or through means such as pension
 A person whose source of income is through the sale of assets or property in India i.e. capital gains
 A person who tends to earn income from more than one housing property
 People who don’t earn money from any business venture
 A person who own assets in countries outside of India
 People who earn income from countries outside of India
 A person whose income from agriculture is above Rs 5,000
 A person who gets his income from any windfall like lotteries or horse racing

ITR-3
The ITR-3 Form is useful for an individual taxpayer or a Hindu Undivided Family, who solely
operate as a partner in a firm but who do not conduct any business under the firm. This is also applicable for
individuals who do not earn any income from the business conducted by the firm. This form is usually filed
by those taxpayers whose taxable income earned from business is only in the form of the following:
 Salary
 Commission
 Bonus
 Interest
 Remuneration

ITR-4
This type of ITR form is useful for those individuals who conduct a business or who earn
income through a profession. This form is applicable for all types of businesses, undertaking or profession,
without any limit on the income earned. Taxpayers can also club any income they receive from windfalls,
speculation, salaries, lotteries, housing properties etc., along with the income earned from their business. An
individual with any profession, right from shopkeepers, doctors or designers to agents, retailers and
contractors, is eligible to file their ITR using this form.

ITR-4S
Also known as Sugam form, the ITR-4S form can be used by any individual or Hindu
Undivided Family (HUF) for filing their income tax returns. This form is applicable for the following
persons:
 Individuals who earn income from any business
 Individuals who earn income from a single housing property
 Individuals who do not earn income through the sale of assets or property in India i.e.: capital gains
 Individuals whose income from agriculture is below Rs 5,000
 Individuals who do not own any assets or property in countries other than India
 Individuals who do not earn income from any country outside India
This form is useful in special circumstances and is applicable to businesses where any income earned is
based on a presumptive method of calculation.

ITR-5

The ITR-5 form is used only by the following bodies to file income tax returns:
 Firms
 Limited Liability Partnerships (LLPs)
 Body of Individuals (BOIs)
 Association of Persons (AOPs)
 Co-operative Societies
 Artificial Judicial Persons
 Local Authorities

ITR-6
Except those companies or organisations that claim tax exemption as per Section 11, the ITR-6
form is used only by all companies. Organisations that can claim tax exemptions as per Section 11 are
organisations in which the income received is accumulated from the property used for the purpose of religion
or charity. This particular income tax return form is only available to be filed online.

ITR-7
Those individuals or companies that are required to submit their returns under the following
sections are required to file their income tax returns through ITR-7:
 Section 139(4A) - Under this section, returns can be filed by individuals who receive income from
any property that is held for the purpose of charity or religion in the form of a trust or legal obligation
 Section 139(4B) - Under this section, returns are to be filed by political parties provided their total
income earned is above the non-taxable limit
 Section 139(4C) - Under this section, returns are to be filed by the following entities:
 Any institution or association mentioned under Section 10(23A)
 Any association involved with scientific research
 Any institution mentioned in Section 10(23B)
 Any news agency
 Any fund, medical institution or educational institution
 Section 139(4D) - Under this section, returns are to be filed by entities such as colleges, universities
or any other such institution wherein income returns or loss are not required to be provided in accordance
with other provisions outlined in this section.

E-verification of Income Tax Returns,

E-verify your ITR without login to e-filing account

Updated on: Aug 26, 2021 - 01:19:47 PM

The income tax department has taken several measures to simplify the income tax return or ITR filing for
taxpayers. Further to these measures, the income tax department has launched a feature ‘e-verify return’ on
its home page.

The feature enables e-verification of income tax return or ITR without logging into the e-filing portal. Earlier
taxpayers had to log into the e-filing portal and then e-verify their ITR. Now, with the introduction of ‘e-
verify’ facility, taxpayers can verify without logging into the e-filing portal.
How to ‘e-verify’ without logging into the e-filing portal

Step 1: A taxpayer has to visit the e-filing portal of the income tax department. The feature ‘e-Verify Return’
can be accessed on the home page of the portal under ‘Our Services’.

Step 2: Enter your PAN, select the relevant Assessment Year, enter Acknowledgment Number of the ITR
filed and Mobile Number and Continue.
Step 3: Enter six-digit OTP number received on the mobile number and submit.
After successful OTP verification, select the return you would like to e-verify.

If you are verifying the return after 120 days of return filing, click on ‘OK’ to proceed to submit the
condonation request. Submit the condonation delay request by selecting the reason for delay from the
dropdown and continue.

Step 4: If you are e-verifying within 120 days of return filing, you can directly select any of the mode
mentioned below and of e-verify:
 Generate Aadhaar OTP
 Existing Aadhaar OTP
 Existing EVC
 Generate EVC through Bank Account
 Generate EVC through Demat Account
 Generate EVC through Bank ATM option (offline method)
For which years can I e-verify using the facility?
The ‘e-verify’ facility has been provided from the ongoing assessment year. You can e-verify the ITR filed
for AY 2019-20 onwards using the ‘e-verify’ facility.

Requirements to e-verify ITR

 A taxpayer should have submitted the ITR for the AY 2019-20 and generated an acknowledgement in
ITR-V.
 The ITR-V would bear an acknowledgement number, which is required under the ‘e-verify’ facility.
 The ITR should be submitted by a taxpayer who is not compulsorily required to use a DSC (Digital
Signature Certificate) to sign the ITR.
 The ITR should not be filed by an authorised signatory or representative assessee.

How do I e-verify ITR until AY 2018-19?

The ‘e-verify’ feature on the home page of the income tax department is available only from the AY 2019-20
onwards. In the case of ITRs filed until AY 2018-19, a taxpayer has to log into the e-filing portal and e-
verify the returns.

How do I e-verify ITR for AY 2019-20?

For the AY 2019-20, a taxpayer can e-verify the ITR under any of the two methods below:
a. Logging into the e-filing portal and selecting the ITR submitted for AY 2019-20 for e-verification.
b. E-verification through the ‘e-verify’ option provided under ‘Our Services’ on the home page of the e-filing
portal.
Under the ‘e-verify’ option, a taxpayer has to type in the PAN (Permanent Account Number), choose AY
2019-20, type in the acknowledgement number from ITR-V of the AY 2019-20 and enter mobile number.
Under the ‘e-verify’ feature, once the taxpayer types the above, the following options will be available:
 Generate Aadhaar OTP
 Existing Aadhaar OTP
 Existing EVC
 Generate EVC through Bank Account
 Generate EVC through Demat Account
 Generate EVC through Bank ATM option (offline method)
E-verification is the last step in the ITR filing process. A taxpayer has a period of 120 days for e-verification
of an ITR after submitting it or uploading it. A taxpayer can e-verify through any of the options mentioned
above. A taxpayer can generate an EVC through any of the following modes (while pre-login)
 EVC through Net banking facility
 EVC through bank account number
 EVC through Demat account number
 EVC through your bank ATM

E- payment of Income Tax:

E-payment of Income Tax in India

The e-payment facility was launched by the IT department for payment of direct taxes online
by taxpayers. As a result of this, taxpayers can now choose from two modes of payment for direct taxes (i)
physical mode i.e. payment made by producing the hard copy of the challan at the authorized bank and (ii) e-
payment mode i.e. making payment via net-banking with any of the authorized banks.

Mandatory E-payment
Some taxpayers are not permitted to use the physical mode of tax payment, rather they
can only pay taxes through the e-payment mode. Taxpayers that fall under this category are:
 All companies
 All non-corporate taxpayers who are liable to get their accounts audited under Section 44AB of the
Income Tax Act

Anyone who does not fall in the mandatory category can choose to voluntarily pay his or her
taxes through the e-payment route. It is always advisable to select the e-payment mode since it saves both
time and efforts.

Requirements for Making E-payment

In order to pay taxes through the e-payment route, one needs to have a net banking
enabled account with an authorized bank. In case the assessee does not hold a net banking enabled account,
the individual can make e-payment through the account of another person, however, the tax should be paid in
his or her name.

Benefits of E-payment of Income Tax

There are many benefits of choosing the e-payment mode for payment of income tax. Some of these
advantages are:
 E-payment of income tax is time saving, simple and safe. It can be done any time from any place.
 The amount will be instantly transferred from your bank account.
 You can enquire whether the Income Tax Department has received the tax amount on the official
website of the IT Department.
 Details of the e-challan will be sent directly to the Income Tax Department. The bank will not have to
go through any data entry.
 A receipt for tax payment is issued right away when the income tax amount is deducted from the
online bank account

Taxes That Can Be Paid Electronically

A taxpayer can use the e-payment mode for paying the following direct taxes:
1. Income-tax
2. Corporate tax
3. Equalization Levy
4. Securities Transaction Tax (STT)
5. Tax deducted at source (TDS)
6. Tax collected at source (TCS)
7. Wealth-tax and other direct taxes like gift tax, expenditure tax, etc.

Nature of Challan That Needs to Be Used

Challan No. Nature of tax payment

ITNS 280 For making payment of income tax and corporate tax (i.e. income tax by companies)
ITNS 281 For making payment of TDS/TCS by corporate and non-corporate deductors or collectors
ITNS 282 For making payment of Securities Transaction Tax, Wealth Tax and other direct taxes
ITNS 283 For making payment of Banking Cash Transaction Tax and Fringe Benefits Tax.
For making payment of income tax and corporate tax in case of undisclosed foreign income
ITNS 284
and assets
ITNS 285 For making payment of equalization levy
ITNS 286 For making payment under Income Declaration Scheme, 2016
ITNS 287 For making payment under the Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY)
Form No. For making payment of tax deducted at source in case of immovable property
 Challan No. Nature of tax payment
26QB
Form No.
For making payment of tax deducted at source in case of rent of property
26QC
Source: incometaxindia.gov.in/tutorials/3%20e-payment%20of%20direct%20taxes.pdf

E-payment Procedure:

Follow the below steps to pay income tax through the online mode:
 Step 1: Login to the NSDL-TIN website www.tin-nsdl.com
 Step 2: Go to Services and click on 'e-payment : Pay Taxes Online'
 Step 3: Select the relevant challan, which in case of income tax payment, is ITNS 280
 Step 4: You will now be redirected to a page asking for the following data:
o Permanent Account Number
o Assessment Year
o Address details of taxpayer
o Type of Payment
o Mode of Payment
 Step 5: After entering all the necessary details, click on the Proceed button. A confirmation screen
will be displayed.
 Step 6: After verifying entered details, click on the Submit button, which will take you to the online
banking page of the selected bank.
 Step 7: On the online banking platform, fill in your user ID and password for online banking and
proceed to enter payment details at the bank site.
 Step 8: After the payment is made, a confirmation receipt will be displayed on the bank website. The
acknowledgement you will receive contains the Challan Identification Number, payment details and bank
name.

List of Authorized Banks That Provide E-payment Facility

1. Allahabad Bank
2. Andhra Bank
3. Axis Bank
4. Bank of Baroda
5. Bank of India
6. Bank of Maharashtra
7. Canara Bank
8. Central Bank of India
9. Corporation Bank
10. Dena Bank
11. HDFC Bank
12. ICICI Bank
13. IDBI Bank
14. Indian Bank
15. Indian Overseas Bank
16. Jammu & Kashmir Bank
17. Oriental Bank of Commerce
18. Punjab and Sind Bank
19. Punjab National Bank
20. State Bank of India
21. Syndicate Bank
22. UCO Bank
23. Union Bank of India
24. United Bank of India
25. Vijaya Bank

Points to Be Noted While Making E-Payment of Income Tax

Challan 280 needs to be filled for making E-payment of income tax and corporate
tax. Following are some of the points that need to be noted while providing details in Challan 280:
The assessee should correctly select the applicable tax with the correct code of
respective tax. The codes provided in Challan 280 are:
 0020 - This is applicable for the income tax paid by companies
 0021 - This is applicable for the income tax paid by non-corporate taxpayers

The assessee should correctly choose the applicable type of payment with the correct code of respective type
of payment. The codes under different type of payment provided in Challan 280 are:
 100 - This is applicable for payment of advance tax
 300 - This is applicable for payment of self-assessment tax
 400 - This is applicable for tax on regular assessment
 106 - This is applicable for tax on distributed profit
 107 - This is applicable for tax on distributed income
 102 - This is applicable for surtax

Due Dates:-

If the Income Tax Liability of any taxpayer is more than Rs. 10,000 in a financial year,
then he is liable to pay such tax in installments during the year itself rather than paying this tax at the end of
the year. This tax which is payable during the year is called “Advance Tax” or “pay as you earn tax” as the
tax is liable to be paid at the time the income is earned i.e. during the year itself rather than paying this tax at
the end of the year.
Advance Tax receipts help the Govt. to receive a constant flow of tax receipts
throughout the year so that the Govt can incur its expenses timely rather than receiving all tax payments at
the end of the year. Advance Tax is liable to be paid by all assesses like Salaried, Self Employed,
Businessman etc. before the filing of Income Tax Return. An Income Tax Return cannot be filed till the
income tax is fully paid.
For Individuals with Salary as the sole source of income, Advance Tax would be taken
care of by the TDS deducted by the employer at the time of payment of salaries as reflected in Form 16 and
thus there would hardly be any Advance Tax payable. Senior Citizens not having any Business Income are
also exempted from the payment of Advance Tax.

What is the due date for Payment of Advance Tax?

Due Date of Installment Amount Payable

On or before 15th June 15% of the Advance Tax
On or before 15th Sep 45% of the Advance Tax
On or before 15th Dec 75% of the Advance Tax
On or before 15th Mar 100% of the Advance Tax

Computing the exact advance tax liability sometimes gets very difficult and
therefore the Income Tax Dept has released an Income Tax Calculator which is free to use by everyone.
Earlier the percentage of Advance Tax to be paid was different for Companies and other than Companies.
However, Budget 2016 has standardised the rates for both companies and asseesses other than companies.
 The above mentioned schedule would not apply to those taxpayers who have opted
for the Presumptive Scheme of Taxation under Section 44AD or Section 44ADA. For taxpayers opting for
this scheme, they would not be required to comply with the above mentioned schedule. The only advance tax
due date deadline applicable to such taxpayers would be 15th March and such taxpayers would be required to
pay 100% of their Tax liability by 15th March.

What is the Due Date for Income Tax Filing? ITR Last Date – FY 2020-21, AY 2021-22

The due date for filing income tax returns is the date by which the returns can be filed
without any late fee or penalty. The taxpayers filing their return beyond such due date will have to pay
interest under section 234A and penalty under section 234F.
CBDT has issued a circular on 20th May 2021 extending the timelines for certain direct
tax compliances for AY 2021-22.

1. ITR Filing:

i. The due date for filing ITR by taxpayers not covered under audit is extended from 31st July 21 to 30th Sep
21, for Tax audit cases it is extended to 30th Nov 2021 and for transfer Pricing cases, the due date is
extended to 31st December. The due date to file a Belated or Revised Return is extended from 31st Dec 2021
to 31st Jan 2022.

2. Furnishing Audit Report:

i. The due date to furnish the audit report is extended to 31st Oct 2021, the audit report for transfer pricing
cases is extended to 30th Nov 2021.

Union Budget 2021 Update:

Exemption from ITR filing to senior citizens aged 75 years and above, earning only pension and
interest income.
It is important for all taxpayers to remember the due date of filing income tax returns. The due
date varies on the basis of taxpayers. For instance, salaried individuals are usually required to file their
income tax returns by the 31st of July whereas Corporates covered under audit can file their returns by 31st
September of the assessment year.

Income tax filing due dates for the FY 2020-21 (AY 2021-22)
Category of Taxpayer Due Date for Tax Filing – FY 2020-21
Individual / HUF/ AOP/ BOI 30th Sep 2021
(books of accounts not required to be audited) (extended from 31st July)
30th Nov 2021
Businesses (Requiring Audit)
(extended from 31st October 2021)
31st December
Businesses (Requiring TP Report)
(extended from 30th Nov 2021)

Not sure whether you should file an income tax return? Read our article. You can
use ClearTax to e-File your IT Return right away.
 If you get the salary, then you can simply upload your Form-16 and ClearTax will prepare your return
automatically and help you finish e-filing quickly
 If you are a freelancer or run a small business or a home-based business like a Kirana store or an e-
commerce seller (Section 44AD or 44ADA), ClearTax is the easiest place to e-file your ITR-4.
 ClearTax automatically selects the correct ITR form applicable to you. We support all ITR forms –
ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7

Important Due Dates of Income tax return filing for the year 2021
Whenever we talk about income tax, there is various kind of compulsory tax formalities that need to be
followed by a person and that too within the specified due dates prescribed, such as filing of income tax
returns, paying advance tax on time.

Here is the TAX CALENDAR for the FY 2020-21 (AY 2021-22):

Due Date Tax Due
15th June 2020 Due date for the first instalment of advance tax for the FY 2021-22
15th September 2020 Due date for the second instalment of advance tax for the FY 2020-21
15th December 2020 Due date for the third instalment of advance tax for the FY 2020-21
Due date to file income tax return for FY 2019-20 (AY 2020-21) other
10th January 2021
than audit cases.
The due date for filing of Income-tax Return for FY 2019-20 for
15th st February 2021
taxpayers whose accounts are subject to tax audit and TP audit
i. The fourth instalment of advance tax due for the FY
2020-21
ii. ii. The due date for the whole amount of advance tax
15th March 2021
for FY 2020-21 for taxpayers covered under the
presumptive scheme of Section 44AD and 44ADA
Read about how to calculate and pay Advance Tax.

What if you missed filing the return within the due date?
If the due date for filing the original return of income is missed, on can file a
return later after the due date called a belated return for the FY 2019-20 on or before 31 March 2021.
The due date of filing the belated return is also specified by the income tax
department. This date is now reduced by 3 months to 31st December of the assessment year as against the
previous due date of the end of the assessment year. Hence the due date for filing the belated return for FY
2020-21 would be 31st December 2021.

Chart of Due dates/Extended due dates under Income Tax Act, 1961
Due Date/ Extended
Nature of Compliance
Due Date
Belated Return of Income for A/Y 2019-20 30th November 2020
Revised Return of Income for A/Y 2019-20 30th November 2020
Third instalments of advance tax for A/Y 2021-22 15th December 2020
Opting for Vivad se Vishwas Scheme 31st December 2020
Furnishing of Tax Audit Report and all other reports
31st December 2020
for A/Y 2020-21
Income Tax Return for A/Y 2020-21 31st December 2020
Income Tax Return (in case of TP Audit)
31st January 2021
for A/Y 2020-21
Income Tax Return (in case of Company Assessee)
31st January 2021
for A/Y 2020-21
Income Tax Return (in case of Audit is mandatory)
31st January 2021
for A/Y 2020-21
Fourth instalments of advance tax for A/Y 2021-22 15th March 2021
Linking of Aadhaar with PAN 31st March 2021
Form 24Q, 26Q, 27Q, and 27EQ of Q1 and Q2 of
31st March 2021
F/Y 2020-21
 Form 26QB, 26QC, and 26QD of April to November
31st March 2021
2020

Various Challans for E-payment of Income Tax.

Challan ITNS 280

Challan No/ ITNS 280 is required to be used for the payment of Income Tax. This
payment of Income Tax may be in the form of Advance Tax, Self Assessment Tax, Tax on Regular
Assessment, Surcharge, Tax on Distributed Profits or Tax on Distributed Income.

Income Tax can be paid online as well as through cash/cheque/demand draft at various
designated bank branches. Whether you pay tax online or by visiting the bank, Challan No/ ITNS 280 would
be required to be filed in all the cases.

If you intent to pay Income Tax by visiting the bank, you can download the Challan No/
ITNS 280 through the following links, furnish all relevant details in form Challan No/ ITNS 280 and deposit
it with the bank along with payment of income tax.

The following are Instructions (along with screenshots) to be followed while furnishing Challan No/ ITNS
280

1. Tax Applicable: If the Income Tax is being levied on a Company, the option to be selected in Challan
No/ ITNS 280 is (0020) – Income Tax on Companies. In all other cases, i.e. where income tax is not being
levied on a company and is being levied on others like Partnership Firm, LLP, Individual etc – the option to
be selected in Challan No/ ITNS 280 is (0021) – Other than Companies.
2. PAN No. & Full Name: The taxpayer should carefully furnish the PAN No. in Challan 280 as a
wrong PAN No. would lead to the tax being deposited on somebody else’s name. The option for mentioning
the name of the taxpayer cannot be manually furnished Challan 280 and it would be automatically fetched
from the name on the PAN No. The name would be displayed on the confirmation screen after you click the
submit button.

3. Assessment Year: The Assessment Year for which the tax is being paid should be carefully selected
in Challan No/ ITNS 280 as it displays the option pay the tax for previous years as well. The Assessment
Year is the next year to the financial year.

4. Type of Payment: In this option, the taxpayer is required to select the type of payment in Challan 280.
If the tax is being paid for the same financial year on the basis of the estimated income – it would be
Advance Tax whereas if the tax is being paid after the end of the financial year – it would be Self
Assessment Tax.

5. Bank Name: The name of the bank through which you intent to make the online payment is to be
selected in this box.

6. Amount of Tax: The amount of income tax to be paid is not mentioned in Challan No/ ITNS 280 and
would be mentioned on the bank website.
Once you have furnished all relevant details, process the proceed button given at the bottom of the page and
it would lead to a confirmation page wherein all details as furnished by you would be displayed. The Full
name of the taxpayer would also be displayed as mentioned on the PAN Card.
If all details displayed on the confirmation screen are correct, press the button –
“Submit to the Bank” or else press the “Edit” button which will again take you back to the first page to edit
the details.
Once all details have been verified by you as correct and submitted to the bank,
your banker will ask you to login to your bank account. Once logged in, it will ask you for the amount of
Income tax you would like to pay, the surcharge levied on the same (if any), education cess levied on the
same, Interest and penalty levied (if any).

On submitting these details, press the “Calculate tax button” and it will show the
total tax to be paid (incl. the surcharge, education cess, interest & penalty). You are requested to make this
payment online.
Once you have made the payment online, a challan counterfoil would be instantly
available on the screen with the CIN i.e. the Challan Identification No. The challan for payment can also be
printed/ saved on your computer.
It is important for the taxpayer to keep a copy of this challan safely as the Challan
Identification Number (CIN) on this counterfoil should be quoted in the income tax return.
Check if Payment through Challan No./ ITNS 280 has reached Income Tax Deptt.
The income tax dept. has also provided the taxpayers with a facility wherein they can check their challan
status and check whether the payment deposited online or through banks via Challan No/ ITNS 280 has
reached the tax department or not.

This information can be verified through the following link:-

https://tin.tin.nsdl.com/oltas/servlet/QueryTaxpayer
On furnishing the Challan Identification No. and various other requisite details, the above link will confirm if
the payment has reached the Income Tax Department.
Please note that it takes a few days for the payment to be reflected on the above mentioned link.

Challan ITNS 281

Challan can be a bill receipt, invoice or an official summons and TDS means Tax Deducted at Source, which
is an official document. The Central Board of Indirect Taxes manages this directly. In this article, we will
discuss more TDS challan.

Background of Challan ITNS 281

In 2004, the manual process of collection of taxes was replaced by Online Tax Accounting System
(OLTAS). It was introduced with an intention to minimize human intervention, thereby reducing errors and
facilitating online transmission of details of tax collected, deposited, refunded etc. OLTAS issues a single
copy of a Challan and enables taxpayers to track the status of their challans or e-challan deposited in banks
online.
There are three types of Challans that are issued:
 Challan ITNS 280 – issued for depositing income tax (includes self-assessment tax, advance tax, tax
on regular assessment)
 Challan ITNS 281 – issued for depositing Tax Deducted at Source (TDS) and Tax Collected at
Source (TCS)
 Challan ITNS 282 – issued for depositing gift tax, wealth tax, Securities Transaction Tax (STT) and
other direct taxes.
Compliance for Challan ITNS 281
Challan ITNS 281 is issued, when the taxpayer deposits TDS and TCS. Therefore, it has to comply with the
timelines laid out for deducting and depositing tax.

Due dates for payment of TDS

 TDS deducted on payments (excluding the purchase of property): 7th of the subsequent month.
 TDS deducted on the purchase of property: 30th of the subsequent month.
 TDS deducted in the month of March: 30th April.
In case of delay in deposit of tax, an interest is levied at the rate of 1.5% per month or part of the month from
the date of deduction.

Process of Filing Challan ITNS 281

There are two processes for filing Challan ITNS 281:
 Online process
 Offline process

Online Process
Go to the tin-nsdl website and select Challan No./ ITNS 281. At the time of payment of taxes the following
details have to be filled in Challan ITNS 281.
 Select the Deductees: Select the appropriate deductee i.e. on whose behalf the payment has been
deducted. There are two options:
o 0020: Company deductees
o 0021: Non-company deductees
 Assessment Year (AY): The relevant AY for which the payment is being made. As an example, If the
payment is made on 30th June 2017 (i.e. relating to FY 2017-18), the relevant AY will be 2018-19
 Tax Deduction Account Number (TAN): TAN is 10-digit alphanumeric number issued to the persons
who are required to deduct or collect tax.
 Type of Payment:
o 200: should be selected if the TDS/ TCS is a regular transaction
o 400: should be selected if the payment is being made for a demand raised by the income tax
authorities.
 Nature of Payment: The section under which TDS/TCS has been deducted has to be selected from the
drop-down list.
 Details of Payment: Enter the income tax, surcharge and late filing fees (if applicable). also needs to
be entered along with the date and bank branch.
Post-filling in all the details, click on submit to bank and you will be redirected to your bank’s portal to
process the payment. Once the transaction is successfully processed, a challan counterfoil shall be displayed
containing the CIN No., payment details, and bank name through which e-payment has been made.

Offline Process
For the offline process, the taxpayer can make the payment by personally visiting the bank
and submitting a challan. A note has to be taken that the payment can be made via cheque or cash. On
submission of the challan, bank will issue a counterfoil receipt back-stamped as a proof of submission.

Process to Check the status of Challan ITNS 281

 For the taxpayers to check the status of the Challan online, you can go to the tin-nsdl portal. There are
two modes to view the status:
o CIN based view
o TAN based view
 To view the status through the CIN based mode, enter the following details from your challan:
o BSR code
o Challan date
o Challan serial number
o Amount
 To views the status through the TAN based mode, enter the following details from your challan:
o TAN
o Challan date

Challan ITNS 282

 Challan Type – ITNS 282

ITNS 282 form is filled to deposit gift tax, estate duty, expenditure tax, and other miscellaneous tax. This is
not a very popular challan form. For the different sections, you have to file different forms with their codes
respectively. The challan online form is pretty common like others and you can make online challan payment
through the income tax department’s online website. Any taxpayer must have net banking registered with any
bank that can make the payment. If you don’t know how to do the complex tax calculations then you can use
Marg ERP software for easy tax payments without any hassle.

Challan ITNS 286

 Challan Type – ITNS 286

Challan number 286 is used for the payment of undisclosed income under the income tax declaration scheme
2016. A provision was introduced in 2016, to pay the taxes on the disclosed income of the previous year
under the income tax declaration scheme. For the payment of such taxes, a payee needs to fill out online
challan form 286.
Income tax on such undisclosed income is paid at a 45 % rate as prescribed by the Income Tax Department.
This provision is effective from 1st June 2016.

Challan ITNS 287

 Challan Type – ITNS 287

Challan number 287 is used to pay the tax by those taxpayers who are planning to disclose income under
Pradhan Mantri Garib Kalyan Yojana (PMGKY). The government launched the PMGKY scheme in 2016.
Under the taxation and investment regime of PMGKY, any citizen can declare any of their income in the
form of cash or deposit to pay tax. The payment of such taxes goes into the government account under
Pradhan Mantri Garib Kalyan Yojana by using an online challan form number 287. To fill the income tax
online challan 287, you need to give the essential details including your personal information. If you are
paying the tax offline you need to make the payment with cheque or demand draft at income tax challan
deposit banks.

 ITNS 26QB

 Challan Type – ITNS 26QB

ITNS 26QB is used for the purpose to pay TDS on the sale of the property. As per the provision under
section 194-IA, when any citizen buys a property or part of property other than agriculture land, costing more
than 50 lakh Rupee is required to deduct TDS on such property at 1% at the time of making payment to the
seller. Challan identification number 26QB can be used by both the corporate and non-corporate sectors.
Only the buyer can deduct the TDS at the time of sale at 1% on total sale value, not the seller. Both buyer
and seller need to submit their PAN card number while filling the form and deposit the payment. No need to
make any payment if the sale value is less than 50 lakh. Information on both the buyer and seller need to fill
on the online challan form.

E-filing of audit Report: Various forms of Audit Report:3CA, 3CB, annexures to Audit Report 3CD.

E-filing of audit Report

Step By Step Procedure For E-Filing Of Tax Audit Report

As we all know, from assessment year 2013-2014 onwards, tax audit report as
required under section 44AB is required to be filled electronically. Before we start the process or procedure
of e-filing tax audit report, please remember that only a chartered accountant having a certificate of practice
can only do tax audit as required under section 44AB of income tax act. Other professionals like company
secretary, advocate and cost accountants are not allowed to do section 44AB tax audit.

To file these tax audit reports, the chartered accountant in practice is required to
get himself registered first as a chartered accountant with the income tax efilling site.
 In the process of registration, the chartered account is required to provide his or
her membership number, enrollment date and other details like PAN number, DSC and email ID.
After completion of registration, an activation link will be delivered to the chartered accountant’s email ID.
After activation user ID will be generated and activated with the password that is selected at the time of
registration.
Now, below are the steps to for e-filing of Tax Audit report:

1. Login with CA ID

2. Go to e-file and click Upload Form

3. Fill all details and choose XML file then Submit

 Enter the PAN of Assessee and PAN of Chartered Accountant.

 Select form name and Assessment Year.
 Attach XML file of Form 3CA-3CD/3CB-3CD. Auditor is required to submit Balance Sheet and
Profit & Loss Account along with Audit report on new e-filing portal.
After the above mentioned attachments are done, auditor would be required to sign them digitally.
Click on “Submit.” After being successfully uploaded, the form would be sent to
work flow of the assessee for his approval.
 The form once uploaded by the auditor would be reflected in the work list of
the auditee. The auditee then would be required to login to e-filing portal, go to his work-list and
accept/reject the form. Once the form has been accepted by the auditee, it would be successfully submitted
and auditee will get an acknowledgement number. The e-filing procedure ends here and no further action is
required to be taken.

: Various forms of Audit Report:3CA, 3CB, annexures to Audit Report 3CD.

Tax Audit Report under Section 44AB:

Tax Audit as prescribed under section 44AB is required to be conducted by a Chartered Accountant holding
full time Certificate of Practice. Tax Audit ensures the correctness of Books of Account maintained by
taxpayer and income is computed as per the provisions of the Income-tax Act. Tax audit report is furnished
in Form no. 3CA/3CB & Form no. 3CD.

When is Form No. 3CA furnished?

Tax audit report in Form no. 3CA is required to be furnished when the assessee is required to get its accounts
audited under any law other than Income-tax law. Form no. 3CA is furnished by a Chartered Accountant
after the completion of Audit. This form is to be submitted along with Form no. 3CD.

Details to be furnished in Form no. 3CA:-

1. Details of the assessee such as Name, Address, PAN etc., 2. Date of Audit Report, 3. Annexure (Audited
Balance Sheet, Profit and loss Account, Form 3CD), 4. A declaration by the auditor that all the details filled
in Form no. 3CA and annexure attached are true to his knowledge, 5. Audit observations and qualifications
found in form 3CD, 6. Auditor’s name, Address, Membership No, FRN No. And signature with seal/stamp.

When is Form No. 3CB furnished?

Audit report in Form no. 3CB is required to be furnished in case where books of account of assessee isn’t
required to be audited under any other law (i.e. law other than income tax law).

In Form No. 3CB, the chartered accountant gives a declaration that he has examined the financial statement
of the assessee for the period under consideration and forms an opinion on such audited financial statements
that these statements reflect true and fair view and reports the observations/comments/ discrepancies/
inconsistencies figured out, if any.

Details to be furnished in form 3CD:-

1. Details of the assessee i.e. Name, address, PAN;
2. Date of audit report;
3. Annexure (Balance Sheet, Profit and Loss Account, Form 3CD)
4. A declaration by the auditor that they have obtained all the information required for Audit;
5. Reporting of detailed observations, discrepancies mentioned in form 3CD;
6. A declaration that the accounts are maintained at the branch and head office;
7. A declaration that the details filled by the auditor are true to his knowledge;
8. Auditor’s name, Address, Membership No, FRN No. And signature with seal/stamp

What is Form No. 3CD?

Form No. 3CD is the format in which the statement of particulars of tax audit is
required to be furnished. This form has a total of 44 clauses where the auditor has to report on various
matters contained therein.

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

a. Part A covers the basic factual details about the assessee and

b. Part B requires the particulars of various compliances under the provisions of Income Tax Law.

What is the due date for furnishing Tax Audit Report?

Due date for filing Tax Audit report under section 44AB is 30th September of Assessment Year of the
relevant Previous Year. However, if the assessee is required to submit report pertaining to international or
specified domestic transactions under section 92E, then due date of filing Tax Audit Report is 30th
November of the relevant Assessment Year.

Non-filing of tax audit report attracts penal consequences wherein the penalty levied is 0.5% of the turnover/
gross receipts or Rs. 1.5 Lakhs, whichever is lower. However, no penalty shall be imposed if such failure is
due to a reasonable cause.

What is a Tax Audit Report?

As per the Income Tax Act, Tax Audit as per Sec 44AB of the Income Tax Act is applicable to a business or
profession in certain specified situations. Tax Audit Report is the report prepared by a Chartered Accountant
in practice after auditing the books of accounts of a business. Under Tax Audit, the CA ensures whether the
books of accounts are correctly prepared and the taxable income is accurately calculated as per the provisions
of the Income Tax Act.
In the case of an assessee to whom Tax Audit as per Section 44AB of the Income Tax Act
is applicable, here are the next steps:
 Appoint a Chartered Accountant in practice to audit the books of accounts
 Chartered Accountant files Audit Report in Form 3CB-3CD or Form 3CA-3CD
 Taxpayer files Income Tax Return in Form ITR 3

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.
Form Name Description
 Tax Audit Report in the case of a taxpayer having business or profession
Form 3CA-3CD income who is mandatorily required to get accounts audited under any other
Act (other than Income Tax Act)
Tax Audit Report in the case of a taxpayer having business or profession
Form 3CB-3CD income who is not required to get accounts audited under any other Act (other
than Income Tax Act)

A Tax Audit Report in the case of a taxpayer who is a Non-Resident or Foreign

Form 3CE
Company receiving a royalty or fee for technical services

Due Date to Upload Tax Audit Report

Guidance Note on Tax Audit
The Tax Audit Report has 2 parts – Form 3CA/3CB and Form 3CD. While Form
3CA/3CB is the statement with details of auditor, Form 3CD is the Statement with particulars required to be
reported as per Sec 44AB of the Income Tax Act.

Form 3CA

Clause Information
Name, Address & PAN of taxpayer
Name of Auditor
Law under which accounts are audited
Point no.1
Date of Audit Report
Period of P&L Account
Date of the Balance Sheet
Point no.2 A declaration that the Audit Report Form 3CD is attached
Point no.3 Audit Observations or Qualifications as per Form 3CD
Name, Address, Membership Number of Auditor
Point no.4 Place & Date of Sign
Stamp & Seal of Auditor

Form 3CA – Tax Audit Report Download

Form 3CB
Clause Information
Date of Balance Sheet and P&L Statement
Point no.1
Name, Address, and PAN of Taxpayer
Point no.2 Address where books of accounts are kept
 Address of branches (if books of accounts are kept at branches)
Observations, Comments, Discrepancies, and Inconsistencies reported by the auditor
Declaration by the auditor of:
Point no.3 * Obtaining all information required for audit
* Confirming that the business has maintained proper books of accounts
* Reporting that Balance Sheet and P&L Account reflects a true and fair view of the
business
Point no.4 Declaration of attaching Form 3CD along with the Audit Report Form 3CB
Details of the Auditor – Name, Address, Membership Number, Firm Registration
Point no.5
Number, Date, and Place

Form 3CB – Tax Audit Report Download

Form 3CD
It is a detailed statement with 44 different clauses filed by the auditor reporting
information related to the business and its transactions for the relevant financial year. The IT Department has
prescribed Form 3CD format and utility that a CA can use for filing the audit report.
Form 3CD – Tax Audit Report Download
Form 3CE
Clause Information

Name, Address & PAN of Non-Resident

Point no.1
Financial Year
Point no.2 Declaration of obtaining all information and explanations for audit
Point no.3 Certification on Permanent Establishment or Fixed Place of a profession in India

Point no.4 Declaration of income from royalty or fees for technical services under Section 44DA

Point no.5 Signature and Name of Auditor with stamp and seal

In addition to Form 3CE, details of income from royalty or fees for technical services should be mentioned in
an Annexure.
Form 3CE – Tax Audit Report Download

Penalty for not filing Form 3CD

An assessee who is liable to get books of accounts audited as per Section 44AB fails to do so, the Assessing
Officer i.e. A.O. may impose a penalty under Section 271B. The penalty shall be lower of the following:
 0.5% of Total Sales / Turnover of business or 0.5% of Gross Receipts of profession
 INR 1,50,000
However, if the assessee can prove a reasonable cause for failure to get a tax audit done, the A.O. may not
impose the penalty.

Annexures to Audit Report 3CD.

Clause-wise summary of Form 3CD

Sl. Particulars Comments
 No.
1 Name of the assessee
These are the basic details included for identification of
2 Address
the assessee. It may be noted that if the audit is in respect
Permanent Account Number (PAN) branch of a branch, name and address of such would need to be
3 should be mentioned along with the name of mentioned.
the assessee.
Whether the assessee is liable to pay indirect
tax like excise duty, service tax, sales tax,
goods and services tax, customs duty, etc. If The registration numbers with the respective tax
4
yes, please furnish the registration number, authorities need to be entered in this clause
GST number or any other identification
number allotted for the same
This refers to the different classes of assesses included in
the Act – individual, Hindu Undivided Family (HUF),
5 Status company, firm (includes LLP), Association of Persons
(AOP), Body of Individuals (BOI), local authority and
artificial juridical person
This relates to the financial year pertaining to the audit.
This period is typically from the 1st April to 31st March
6 Previous year from ___ to ____ of the next year but care has to be taken in case of closure
of businesses, new businesses, amalgamations,
demergers, etc.
This relates to the relevant assessment year pertaining to
7 Assessment Year
the audit
Indicate the relevant clause of section 44AB The applicable clause [(a) to (e)] of Section 44AB under
8
under which the audit has been conducted which tax audit is being conducted should be selected.
The name of the partners or members of a firm or AOP
will be covered here. In case a person is in a
If firm or association of persons, indicate name representative capacity (e.g., A’s HUF is a partner and A
9 (a) of partners/members and their profit sharing is in representative capacity on behalf of the HUF), then
ratios the name of the beneficial partner/member should be
mentioned (A’s HUF). Further, profit sharing ratio
includes the ratio at which losses would be shared.
If there is any change in the partners or
members or in their profit sharing ratio since All changes that occur during the year, no matter how
(b)
the last date of the preceding year, the often, must be mentioned.
particulars of such change
Nature of business or profession (if more than
one business or profession is carried on during The assesse will have to select the business code
10 (a)
the previous year, nature of every business or applicable to him from the list provided. If there are any
profession) changes in the nature of business or profession to be
carried out, the same needs to be mentioned. Temporary
If there is any change in the nature of business discontinuance of business need not be mentioned.
(b)
or profession, the particulars of such change
Whether books of account are prescribed under Every person, upon crossing a specified limit of turnover,
11 (a) section 44AA, if yes, list of books so needs to compulsorily maintain certain books of accounts
prescribed. as prescribed like cash book, journal, ledger, etc. Further,
Lists of books of account maintained and the certain specified professionals have additional records
(b)
address at which the books of account are kept. prescribed that they must maintain. For example, a doctor
(c) List of books of account and nature of relevant must maintain a daily case register where certain details
documents examined of patient visits are recorded. The tax auditor lists the
 books and records that were checked by him.
Whether the profit or loss account includes any The amount of profit that relates to a business subject to
profits and gains assessable on presumptive the presumptive scheme of taxation must be reported
basis, if yes, indicate the amount and the here. In case of multiple businesses, only the amount of
12
relevant section (44AD, 44AE, 44AF, 44B, profit that relates to the businesses subject to the
44BB, 44BBA, 44BBB, Chapter XII-G, First presumptive scheme of taxation will be reported section-
Schedule or any other relevant section) wise.
Method of accounting employed in the
13 (a)
previous year
Whether there had been any change in the
The method of accounting, whether cash or mercantile
method of accounting employed vis-à-vis the
(b) must be mentioned. Companies however are
method employed in the immediately
compulsorily required to maintain their accounts on
preceding previous year.
accrual or mercantile basis under the Companies Act
If answer to (b) above is in affirmative, give
(c) details of such change, and the effect thereof
on the profit or loss.
Whether any adjustment is required to be made
to the profits or loss for complying with the The Income Tax Act has prescribed certain Income
(d) provisions of income computation and Computation and Disclosure Standards (ICDS) ranging
disclosure standards notified under section from ICDS I to ICDS X. The effect of these ICDS must
145(2) be taken in the computation of tax to arrive at the net tax
liability – The increase in profit, decrease in profit and
If answer to (d) above is in the affirmative, net effect is mentioned as per each ICDS.
(e)
give details of such adjustments
The ICDS also contain certain disclosure requirements
(f) Disclosure as per ICDS and this is the clause under which such disclosures are
ultimately made.
Method of valuation of closing stock employed This method of valuation would be on the basis of the
14 (a)
in the previous year. method of accounting regularly employed by the assessee
In case of deviation from the method of subject to certain prescribed adjustment on account of
(b) valuation prescribed under section 145A, and tax, duty, cess, etc. (like excise duty, VAT) incurred in
the effect thereof on the profit and loss procuring the inventory.
Give the following particulars of the capital Generally speaking, an asset held as a capital asset would
15
asset converted into stock-in-trade: attract income under the head capital gains at the time of
(a) Description of capital asset; its sale and an asset held as stock-in-trade would attract
(b) Date of acquisition; income under the head profits and gains of business.
When it is decided to treat a capital asset as part of the
(c) Cost of acquisition;
stock of the business, it is treated as a ‘transfer’ for
Amount at which the asset is converted into income tax purposes and will attract capital gains subject
(d)
stock-in-trade. to certain conditions and exceptions.
Amounts not credited to the profit and loss Section 28 is the charging section for the income under
16
account, being – the head ‘profits and gains of business or profession’.
The items falling within the scope of section This clause intends to capture and report those incomes
(a)
28; which ordinarily wouldn’t be a business income but is
The proforma credits, drawbacks, refund of deemed to be business income by virtue of the Income
duty of customs or excise or service tax, or Tax Act. For example, compensation received on account
(b) refund of sales tax or value added tax where of termination of employment, profit on sale of import
such credits, drawbacks or refunds are admitted license, remuneration received by a partner from a
as due by the authorities concerned; partnership firm, etc. Even export benefits like pro forma
Escalation claims accepted during the previous credits, duty drawbacks, refund of customs, etc. would be
(c) covered under this clause if not credited to the profit and
year;
 (d) Any other item of income;

(e) Capital receipt, if any. loss account. Further, a capital receipt would not
normally attract tax unless the transaction is specifically
covered in the provisions. Thus if such receipt is not
If the sale consideration of an immovable property is less
Where any land or building or both is
than the stamp duty value of such property, the stamp
transferred during the previous year for a
duty value shall be deemed to be the sale consideration
consideration less than value adopted or
for the purpose of computing capital gains thereon where
assessed or assessable by any authority of the
17 such property is held as a capital asset and where the
State Government referred to in section 43CA
property is held as stock-in-trade, the stamp duty value
or 50C, please furnish details of property,
shall be taken as income/sale value to be considered
consideration received or accrued and value
under the business head of income. This clause aims to
adopted or assessed or assessable
check compliance in this regard.
Particulars of depreciation allowable as per the
Income Tax Act, 1961 in respect of each asset
18
or block of asset, as the case may be, in the
following form:-
(a) Depreciation of asset/block of assets
(b) Rate of depreciation
Actual cost of written down value, as the case
(c)
may be
Additions/deductions during the year with The Income Tax Act prescribes depreciation to be
dates; in the case of any addition of an asset, charged as per the ‘block of assets system’ subject to
date put to use; including adjustment on certain conditions. This clause checks that the
account of: (i) Central Value Added Tax depreciation has been arrived at correctly.
credits claimed and allowed under the Central
(d)
Excise Rules, 1944, in respect of assets
acquired on or after 1st March 1994, (ii)
change in rate of currency, and (iii) subsidy or
grant or reimbursement, by whatever name
called.
(e) Depreciation allowable
(f) Written down value at the end of the year
Amounts admissible under sections: 32AC, These sections allow for special deductions for prescribed
32AD, 33AB, 33ABA, 35(1)(i), 35(1)(ii), businesses. The tax auditor checks whether the assessee
35(1)(iia), 35(1)(iii), 35(1)(iv), 35(2AA), has complied with all the necessary conditions to claim a
19
35(2AB), 35ABB, 35AC, 35AD, 35CCA, deduction under these sections. Some of these sections
35CCB, 35CCC, 35CCD, 35D, 35DD, may require a certificate by a Chartered Accountant
35DDA, 35E; certifying the eligibility.
The assessee would be allowed a deduction in respect of
Any sum paid to an employee as bonus or
a payment made to an employee in the nature of a bonus
commission for services rendered, where such
20 (a) of commission only if such bonus or commission was
sum was otherwise payable to him as profits or
available exclusively to such employee in relation to the
dividend
services rendered by him.
These funds include superannuation funds created for the
Details of contribution received from benefit of the employee. The contributions made by the
(b) employees for various funds as referred to in employer to such funds shall be allowed as a deduction
section 36(1)(va) only if they are made within the due date as specified in
the applicable law.
 Please furnish the details of amounts debited to The nature of these expenses are such that they may
profit and loss account, being in the nature of either be fully disallowed or only allowed subject to
21 (a)
capital, personal, advertisement, expenditure, certain conditions. If they form a part of the profit and
etc. loss account, they have to be disclosed here.
These sections broadly relate to disallowances made in
Amounts inadmissible under section 40(a)(i),
respect of an expenditure or a part of an expenditure
(b) 40(a)(ia), 40(a)(ic), 40(a)(iia), 40(a)(iib), 40(a)
where tax was required to be deducted at source but the
(iii), 40(a)(iv), 40(a)(v)
assessee failed to do so.
This is applicable to firm, AOP or BOI assessees where
payments are made to the partners/members in the nature
Amounts debited to profit and loss account
of salary, remuneration, interest, etc. The Act has
being, interest, salary, bonus, commission or
(c) prescribed certain limits upto which such expenditure can
remuneration inadmissible under section
be allowed in the hands of the firm/AOP/BOI and if the
40(b)/40(ba) and computation thereof;
expenditure exceeds this limit, the same is not allowed as
a deduction.
This section places a disallowance on any expenditure
incurred by any mode other than an account payee
Disallowance/deemed income under section
(d) cheque/bank draft or through a bank account using ECS
40A(3)
if they exceed Rs. 10,000 in a day subject to certain
exceptions.
Provision for payment of gratuity not allowable The deduction under this section is allowed in relation to
under section 40A(7); a provision created for payment of contribution to an
(e)
approved gratuity fund only if such sum is actually
payable during the year.
Any sum paid by the assessee as an employer Any payment incurred by an employer towards setting up
not allowable under section 40A(9); of any fund, trust, Company, AOP, BOI, Society, etc will
(f)
not be allowed as a deduction subject to certain
exceptions.
(g) Such a liability usually relates to ongoing legal disputes
Particulars of any liability of a contingent
where it is not certain that there will be a liability for the
nature;
as assessee.
Amount of deduction inadmissible in terms of
The section prescribes a method of calculation of an
section 14A in respect of the expenditure
(h) amount of expenditure which will be disallowed as it is
incurred in relation to income which does not
deemed to be incurred towards earning exempt income.
form part of total income;
Where the assessee borrows a loan for business purposes,
the interest thereon would normally be allowed as a
Amount inadmissible under the proviso to deduction. However, if such loan was used to acquire an
(i)
section 36(1)(iii) asset, the interest shall not be allowed for the period
between the date of borrowing of the loan to the date on
which the asset was put to use.
22 Amount of interest inadmissible under section The MSME act prescribes an amount of interest that
23 of the Micro, Small and Medium would not be allowed as a deduction in the computation
Enterprises Development Act, 2006. of taxable income of the assessee.
23 This section basically disallows expenditure incurred by
Particulars of payments made to persons
way of payment to specified persons (relatives) if the
specified under section 40A(2)(b)
assessing officer finds them to be excessive in nature.
These sections allow for a special deduction to certain
Amounts deemed to be profits and gains under
assessees subject to certain conditions. In case of a breach
24 section 32AC or 32AD or 33AB or 33ABA or
of these conditions, the whole or a part of the deduction
33AC.
allowed earlier would be included as deemed income.
 This section relates to deemed profits arising out of:

Where a deduction has been allowed in an earlier year in

respect of an expenditure but the assessee has received
some benefit whether by cash or by reduction in actual
liability in the current year, such benefit will be
chargeable to tax under this section.

Where an asset has been sold by an assessee engaged in

the power generation and distribution and such sale
consideration exceeds the written down value.
Any amount of profit chargeable to tax under
25 Where an asset used in scientific research has been sold
section 41 and computation thereof.
for a consideration greater than its original cost

Where a bad debt that was allowed earlier is subsequently

recovered.

Where an amount has been withdrawn from a special

reserve created by a financial company on which
deduction was earlier allowed

Where such amounts/benefits as above have been

received even after the closure of business.
In respect of any sum referred to in clauses (a),
26 (b), (c), (d), (e), (f) or (g) of section 43B, the
liability for which:- This section allows certain expenditure like cesses, taxes,
Pre-existed on the first day of the previous year duties, interest to bank, etc. to be claimed only on actual
but was not allowed in the assessment of any payment of the same if it is made before the due date of
(a) preceding previous year and was (a) paid filing the return for the respective assessment year.
during the previous year; (b) not paid during
the previous year;
Was incurred during the previous year and was
(a) paid on or before the due date for furnishing
the return of income of the previous year under
section 139(1); (b) not paid on or before the
(b)
aforesaid date (State whether sales tax, customs
duty, excise duty, or any other indirect tax,
levy, cess, impost, etc., is passed through the
profit and loss account.)
Amount of Central Value Added Tax credits
The details of the CENVAT credit carried forward from
availed of or utilised during the previous year
the previous year, its utilization and the balance left needs
27 (a) and its treatment in the profit and loss account
to be provided along with the treatment of the same in the
and treatment of outstanding Central Value
accounts of the as assessee.
Added Tax credits in the accounts.
Particulars of income or expenditure of prior
This clause would be relevant only for the persons
(b) period credited or debited to the profit and loss
following the mercantile system of accounting.
account.
28 Whether during the previous year the assessee Where the assessee receives certain shares of a private
has received any property, being share of a limited company where the Fair Market Value of such
company not being a company in which the shares minus the amount paid to acquire such shares
public are substantially interested, without exceeds Rs. 50,000, such excess shall be chargeable to
 consideration or for inadequate consideration
as referred to in section 56(2)(viia), if yes,
please furnish details of the same.
Whether during the previous year the assessee tax under the head ‘Income from other sources’.
received any consideration for issue of shares
29 which exceeds the fair market value of the
shares as referred to in section 56(2)(viib), if
yes, please furnish details of the same.
Whether any amount is to be including in
income chargeable under the head ‘income Advances received in relation to the transfer of a capital
29A (a)
from other sources’ as referred to in clause (ix) asset are shown as income from other sources where the
of sub-section (2) of section 56? (Yes/No) advances are forfeited and the capital asset is not
If yes, please furnish the following details: (i) ultimately transferred.
(b)
Nature of income (ii) Amount thereof
Details of any amount borrowed on hundi or
any amount due thereon (including interest on
Hundis are financial instruments not recognised by
30 the amount borrowed) repaid, otherwise than
formal law.
through an account payee cheque [Section
69D]
Whether primary adjustment to transfer price,
30A (a) as referred to in sub-section (1) of 92CE, has
been made during the previous year? (Yes/No)
If yes, please furnish the following details:- (i)
Under which clause of sub-section (1) of 92CE
primary adjustment is made? (ii) Amount (in The transfer pricing provisions under the Income Tax Act
Rs.) of primary adjustment (iii) Whether the in general aim to value transactions with associated
excess money available with the associated enterprises at an arm’s length price. This clause aims to
enterprise is to be repatriated to India as per the capture such relevant information within the tax audit
(b) provisions of sub-section (2) of section 92CE? report.
(Yes/No) (iv) If yes, whether the excess money
has been repatriated within the prescribed time
(Yes/No) (v) If no, the amount (in Rs.) of
imputed interest income on such excess money
which has not been repatriated within the
prescribed time.
Whether the assessee has incurred expenditure Where an Indian Company borrows a sum of money from
during the previous year by way of interest or an associated enterprise, the deduction in respect of
30B (a) of similar nature exceeding one crore rupees as interest payable on such borrowed amount under the
referred to in sub-section (1) of section 94B? Income-tax Act shall be restricted to 30% of EBITDA
(Yes/No) (Earnings before interest, tax, depreciation and
(b) If yes, please furnish the following details:- (i) amortisation). The interest in excess of 30% shall be
Amount (in Rs.) of expenditure by way of allowed to be set off in subsequent years subject to
interest or of similar nature incurred: (ii) certain conditions. This clause places a check for
Earnings before interest, tax, depreciation and compliance in this regard.
amortization (EBITDA) during the previous
year (in Rs.): (iii) Amount (in Rs.) of
expenditure by way of interest or of similar
nature as per (i) above which exceeds 30% of
EBITDA as per (ii) above: (iv) Details of
interest expenditure brought forward as per
sub-section (4) of section 94B (v) Details of
 interest expenditure carried forward as per sub-
section (4) of section 94B
Whether the assessee has entered into an
impermissible avoidance arrangement, as
30C (a)
referred to in section 96, during the previous An impermissible avoidance arrangement would be an
year? (Yes/No) arrangement where the main purpose is to obtain a tax
benefit and is not at arm’s length, results in tax evasion
If yes, please specify:- (i) Nature of the (directly or indirectly), lacks commercial substance or is
impermissible avoidance arrangement: (ii) carried out in a manner that does not otherwise occur if
(b) Amount (in Rs.) of tax benefit in the previous the arrangement was for bona fide purposes.
year arising, in aggregate, to all the parties to
the arrangement”;
Particulars of each loan or deposit in an
amount exceeding the limit specified in section
269SS taken or accepted during the previous
year: Name, address and PAN of the lender or
depositor, Amount of loan or deposit taken or
31 (a) accepted, whether the same was squared up
during the year, maximum amount outstanding
at any time during the previous year, whether Taking a loan or any amount in relation to an immovable
the same was taken or accepted by cheque or property (specified sums) exceeding Rs. 20,000 otherwise
bank draft (specify if account payee) or use of than by way of an account payee cheque or bank draft or
ECS through a bank account use of a bank account through ECS would attract a
Particulars of each specified sum in an amount penalty equal to the amount borrowed. Details of all loans
exceeding the limits specified in section 269SS or specified sums taken exceeding Rs. 20,000 are
taken or accepted during the previous year: provided herein.
Name, address and PAN (if available) of the
person from whom specified sum is received,
(b)
amount of specified sum taken or accepted,
whether the specified sum was taken or
accepted by cheque or bank draft (specify if
account payee) or use of ECS through a bank
account
Particulars of each specified sum in an amount Section 269ST says that a person is not allowed to
exceeding the limits specified in section 269ST receive more than Rs. 2 lakh from either: (i) From a
taken or accepted during the previous year: person in a day (in total); (ii) In respect of single
Name, address and PAN (if available) of the transaction; or (iii) In respect of transactions relating to a
person from whom specified sum is received, single event/occasion; If such amount is paid through any
(ba)
amount of specified sum taken or accepted, mode other than an account payee cheque / bank draft or
whether the specified sum was taken or use of ECS through a bank account. The reporting of
accepted by cheque or bank draft (specify if non-compliance with this section will be made in this
account payee) or use of ECS through a bank clause.
account
(bb) Particulars of each receipt in an amount
exceeding the limit specified in section 269ST,
in aggregate from a person in a day or in
respect of a single transaction or in respect of
transactions relating to one event or occasion
from a person, received by a cheque or bank
draft, not being an account payee cheque or an
account payee bank draft, during the previous
year:- (i) Name, address and Permanent
 Account Number (if available) of the payer; (ii)
Amount of receipt (in Rs.)
Particulars of each payment made in an amount
exceeding the limit specified in section 269ST,
in aggregate to a person in a day or in respect
of a single transaction or in respect of
transactions relating to one event or occasion to
a person, otherwise than by a cheque or bank
(bc)
draft or use of electronic clearing system
through a bank account during the previous
year:- (i) Name, address and PAN (if available)
of the payee; (ii) Nature of transaction; (iii)
Amount of payment (in Rs.); (iv) Date of
payment;
Particulars of each payment in an amount
exceeding the limit specified in section 269ST,
in aggregate to a person in a day or in respect
of a single transaction or in respect of
transactions relating to one event or occasion to
(bd)
a person, made by a cheque or bank draft, not
being an account payee cheque or an account
payee bank draft, during the previous year:- (i)
Name, address and PAN (if available) of the
payee; (ii) Amount of payment (in Rs.)
Particulars of each repayment of loan or Repayment of a loan or any amount in relation to
deposit or any specified advance in an amount purchase of an immovable property (specified sums)
exceeding the limit specified in section 269T exceeding Rs. 20,000 otherwise than by way of an
made during the previous year: Name, address, account payee cheque or bank draft or use of a bank
PAN (if available) of payee, amount of account through ECS would attract a penalty equal to the
(c)
repayment, maximum amount outstanding at amount borrowed. Details of all repayments of loans or
any time during the previous year, whether the specified sums paid exceeding Rs. 20,000 during the year
repayment was made by cheque or bank draft are provided herein.
(specify if account payee) or use of ECS
through a bank account
Particulars of repayment of loan or deposit or
any specified advance in an amount exceeding
the limit specified in section 269T received
otherwise than by a cheque or bank draft or use
of ECS through a bank account during the
(d) previous year: Name, address, PAN (if
available) of the payer, amount of loan or
deposit or any specified advance received
otherwise than by a cheque or bank draft or use
of ECS through a bank account during the
previous year.
(e) Particulars of repayment of loan or deposit or
any specified advance in amount exceeding the
limit specified in section 269T received by a
cheque or bank draft which is not an account
payee cheque or account payee bank draft
during the previous year: Name, address, PAN
 (if available), of the payer, amount of loan or
deposit or any specified advance received by a
cheque or a bank draft which is not an account
payee bank cheque or bank draft during the
previous year.
Details of brought forward loss or depreciation Such amounts need to be revised for any change arising
32 (a)
allowance to the extent available out of a rectification order, assessment order, etc.
This provision is applicable to a private limited company
with the following exceptions:

Less than 51% of the voting power only has changed

hands
Whether a change in the shareholding of the
company has taken place during the previous Change in shareholding is due to death of a shareholder
(b) year due to which the losses incurred prior to
the previous year cannot be allowed to be Change in shareholding is due to shares gifted by a
carried forward in terms of section 79. shareholder to a relative

Where the holding Company is a foreign company and

the change in shareholding is due to
amalgamation/demerger where less than 51% of the
shareholding has changed
Whether the assessee has incurred any
speculation loss referred to in section 73 during
(c)
the previous year. If yes, please furnish details
of the same.
Whether the assessee has incurred any loss
A speculation loss cannot be set off against any income
referred to in section 73A in respect of any
(d) other than a speculation gain. Further, a loss in
specified business during the previous year, if
speculation business will be allowed to be carried
yes, please furnish details of the same.
forward for only 4 years. This clause keeps the above
In case of a company, please state that whether provisions in check.
the company is deemed to be carrying on a
speculation business as referred in explanation
(e)
to section 73, if yes, provide details of
speculation loss if any incurred during the
previous year.
Section-wise details of deductions, if any, The tax auditor will have to verify whether the assessee
33 admissible under Chapter VIA or Chapter III has fulfilled the conditions necessary to claim the section-
(Section 10A, 10AA). wise deductions.
Whether the assessee is required to deduct or
collect tax as per the provisions of Chapter
34 (a)
XVII-B or Chapter XVII-BB, if yes, please These sections broadly relate to compliances in respect of
furnish details TDS payable on certain expenses. The tax auditor reports
the expenditure on which tax was required to be
Whether the assessee is required to furnish the
deducted, whether such tax was actually deducted and
(b) statement of tax deducted or tax collected. If
paid to the government on time. In case of a failure to
yes, please furnish the details
comply on time, the details of penalty in respect of such
Whether the assessee is liable to pay interest late payments will also be covered.
(c) under section 201(1A) or section 206C(7). If
yes, please furnish details.
35 (a) In the case of a trading concern, give The name of the stock item and its unit of measurement
quantitative details of principal items of goods would need to be provided
 traded: (i) Opening Stock; (ii) purchases during
the previous year; (iii) sales during the
previous year; (iv) closing stock; (v)
shortage/excess, if any
In the case of a manufacturing concern, give
quantitative details of the principal items of
raw materials, finished products and by-
products: A. Raw Materials: (i) opening stock;
(ii) purchases during the previous year; (iii)
consumption during the previous year; (iv)
sales during the previous year; (v) closing
(b) stock; (vi) yield of finished products; (vii)
percentage of yield; (viii) shortage/excess, if
any. B. Finished products/by-products: (i)
opening stock (ii) purchases during the
previous year; (iii) quantity manufactured
during the previous year; (iv) sales during the
previous year; (v) closing stock; (vi)
shortage/excess, if any.
In the case of a domestic company, details of
tax on distributed profits under section 115-O
in the following form:- (a) total amount of Where a domestic company has paid dividend to its
distributed profits; (b) amount of reduction as shareholders, it is liable to pay dividend distribution tax
36
referred to in section 115-O (1A)(i); (c) amount thereon. This dividend also includes deemed dividend
of reduction as referred to in section 115-O subject to certain conditions.
(1A)(ii); (d) total tax paid thereon; (e) dates of
payments with amounts.
a) Whether the assessee has received any
amount in the nature of dividend as referred to
in sub-clause (e) of clause (22) of section 2?
36A
(Yes/No) (b) If yes, please furnish the
following details:- (i) Amount received (in
Rs.): (ii) Date of receipt
Whether any cost audit was carried out, if yes,
give the details, if any, of disqualification or
37 disagreement on any
matter/item/value/quantity as may be
reported/identified by the cost auditor. The provisions of deemed dividend are attracted when a
private limited company advances an amount to a
Whether any audit was conducted under the shareholder (or to a concern in which he has a substantial
Central Excise Act, 1944, if yes, give the interest) having more than 10% voting power in the
details, if any, of disqualification or company subject to certain conditions.
38
disagreement on any
matter/item/value/quantity as may be
reported/identified by the auditor.
Whether any audit was conducted under
section 72A of the Finance Act, 1994 in
relation to valuation of taxable services, if yes,
39 give the details, if any, of disqualification or
disagreement on any
matter/item/value/quantity as may be
reported/identified by the auditor.
 Details regarding turnover, gross profit, etc. for
the previous year and preceding previous year:
Calculation of such ratios would not be applicable for
40 1. Total turnover 2. Gross profit/turnover 3.
persons engaged in profession/ service industry.
Net profit/turnover 4. Stock-in-trade/turnover
5. Material consumed/finished goods produced
Please furnish details of demand raised or There are various other legislations like indirect tax,
refund issued during the previous year under profession tax, etc. that the assessee may be subject to
41 any tax laws other than Income-tax Act, 1961 and such acts may have their own authorities to pass a
and Wealth Tax Act, 1957 alongwith details of demand or refund order. The details of orders of such
relevant proceedings authorities need to be provided in this clause.
Whether the assessee is required to furnish
42 (a) statement in Form No. 61 or Form No. 61A or
Form No. 61B? (Yes/No)
If yes, please furnish Income-tax Department The forms mentioned in this clause relate to Specified
Reporting Entity Identification Number, Type Financial Transactions where reporting needs to be done
of form, Due date for furnishing, Date of in respect of certain prescribed transactions when they are
furnishing (if furnished), Whether the form entered into by such assessees as are prescribed in
(b)
contains information about all details/ Section 285BA.
transactions which are required to be reported.
If not, please furnish list of the details/
transactions which are not reported
Whether the assessee or its parent entity or
alternate reporting entity is liable to furnish the
43 (a)
report as referred to in sub-section (2) of
section 286 (Yes/No) The report mentioned in this clause relates to providing
information in respect of the international group of
If yes, please furnish the following details: (i) entities of which the assessee is a part and where the
Whether report has been furnished by the parent entity of such international group is not resident in
assessee or its parent entity or an alternate India.
(b)
reporting entity (ii) Name of parent entity (iii)
Name of alternate reporting entity (if
applicable) (iv) Date of furnishing of report
This clause attempts to provide a break-up of the total
expenditure into various fields that are relevant from the
GST point of view like expenditure in relation to exempt
Break-up of total expenditure of entities goods / services under GST, payments to entities under
44
registered or not registered under the GST the Composition Scheme, Payments to entities not
registered under GST etc. A similar schedule is available
as a part of the Income Tax return forms to be filled up
by those not liable for tax audit

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