The Central Board of Direct Taxes (CBDT) deferred the Tax Audit Clause 30C and 44 till 31st Mar 2022 due to COVID-19. The CBDT has extended the due date for filing Form 3CD for the fourth time the requirement for companies to include in their tax audit report the details of Goods and Services Tax (GST) and GAAR.
Section 44AB of the Income-tax Act, 1961 read with rule 6G of the Income tax Rules, 1962 requires specified persons to furnish the Tax Audit Report along with the prescribed particulars in Form No. 3CD. The existing Form No. 3CD was amended vide notification no. GSR 666(E) dated 20th July, 2018 with effect from 20th August, 2018.
Tax Auditors of a certain class of Assessees shall file Form 3CD in the prescribed format. Presently, the companies that are not subjected to tax audits are required to furnish GST details. The Central Government, on 20th July, has revised Form No. 3CD and extended the scope of tax audit cases.
Form 3CD is a Form in accordance with Rule 6G(2) and Section 44AB of the Indian Income Tax Act, 1961. The Form is a part of the process of filing Income Tax Returns in India and is an Annexure to the Audit Report. Form 3CD contains 32 Clauses. It is required to be attached with Forms 3CA or 3CB, as applicable.
However, the reporting under clause 30C and clause 44 of the Tax Audit Report was kept in abeyance till 31 March, 2019 vide Circular No. 6/2018 dated August 17, 2018, which was subsequently extended to 31 March, 2020 vide Circular No. 9/2019. Vide circular no. 10/2020 dated April 24, 2020, it was further extended to 31 March, 2021.
Business entities having a turnover of more than ₹1 crore (or ₹2 crore if they have opted for presumptive taxation) and professionals with gross receipts of more than ₹50 lakh have to comply with the tax audit requirements.
“In view of the prevailing situation due to COVID-19 pandemic across the country, it has been decided by the Board that the reporting under clause 30C and clause 44 of the Tax Audit Report shall be kept in abeyance till 31 March, 2022,” the CBDT notified.
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