Tax Audit – New clauses inserted in form 3CD wef 01.10.2020

• October 13, 2020
• CA Chandan Agarwal's Office

Tax Audit -New clauses inserted by Income Tax (22nd Amendment) Rules 2020 in form 3CD with effect from 01st October 2020

1. As per the Notification No. 82/2020/F. No. 370142/30/2020-TPL dated 1^st October 2020 (Notification) issued by the Central Board of Direct Taxes (CBDT), the Income Tax (22^nd Amendment) Rules 2020 have been notified effective from the date of notification i.e. 1^st October 2020.

2. The aforesaid notification seeks to:

2.1 Amend Rule 5(1) relating to allowable depreciation for assessees opting for concessional rates of income tax

2.2 Insert Rules 21AG and 21AH

2.3 Amend Form no. 3CD in Appendix II

2.4 Amend Form no. 3CEB

2.5 Amend ITR 6 in respect of returns applicable to companies

3. In this article, an attempt is made to understand the reporting requirements of the new clauses added/substituted in form no. 3CD by the aforesaid notification applicable for the Tax Audit to be conducted under section 44AB of the Income Tax Act 1961 (hereinafter “the Act”) for assessment year 2020-2021 as applicable.

4. As per Para 3(a) of the aforesaid notification, the following 3 clauses/sub clause are inserted / modified with effect from 1^st October 2020. The same are reproduced hereunder:

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