Property Advance above Rs. 20,000 must be disclosed in the Audit Report: CBDT [Read Notification]

The Central Board of Direct Taxes (CBDT) recently notified that property advance of Rs. 20,000 should be disclosed in the audit report under section 44AB of the Income Tax Act.

The Notification amends Serial Number 31 of the Form CD in this regard.

Form 3CD is a Form in accordance with Rule 6G(2) and Section 44AB of the 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.

The notification mandates that in case of each loan or deposit in an amount exceeding the limit of Rs. 20,000 taken or accepted during the previous year, the name, address and PAN of the lendor or depositor, mode of payment etc. must be furnished.

It also requires furnishing of details of the depositor or payer who makes payment under section 269T of the Act, which provides that any loan or deposit shall not be repaid, otherwise than by an account payee cheque or account payee bank draft or online transfer through a bank account, by the persons specified in the section if the amount of loan or deposit is twenty thousand rupees or more. Section 269T was introduced in the act vide Finance Act, 2015.

In connection with this, the Notification lays down the list of information to be furnished during the following situations;

1. On repayment of loan or deposit or any specified advance in an amount exceeding the limit specified in section 269T made during the previous year.
2. 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 electronic clearing system through a bank account during the previous year.
3. Particulars of repayment of loan or deposit or any specified advance in an 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.

However, the above particulars need not be given in the case of a Government company, a banking company or a corporation established by the Central, State or Provincial Acts.

Read the full text of the Notification below.