CBDT enables Tax audit filing i.e. Form 3CD for AY 2021-22 on E-filing website | E-filing 2.0

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CBDT has recently i.e. on 26.10.2021, released and enabled the filing of Tax audit report on e-filing portal in Form 3CA-3CD or 3CB-3CD.

Now, chartered Accountants can file Tax audit reports for their clients and complete the compliance. However, the release of this version of Tax audit forms has come with some terms and conditions which are as under:

“The form is enabled for AY 2021-22 and AY 2020-21, prior years would be available shortly.

This version can be used for Tax Audits in cases not involving large number of records. The next version will have CSV import/upload to accommodate large number of records in various schedule of the form.”

Therefore, firstly one cannot revise or file earlier years Tax audit report as of now on new e-filing website and secondly this schema is only useful for small tax audit reports where there are not much annexures and schedule. Hence, one will have to still wait for the release of schema for filing huge tax audit reports.

Normally the due date for filing of Tax audit report is 30.09.2021 which was extended to 31.10.2021 and which has been now further extended to 15.01.2021. To read about Extended due date CLICK HERE: [Breaking News] Income tax return and Tax audit due date extended by Income tax department for AY 2021-22 – Taxontips

Let’s understand in brief who needs to do tax audit under the Income tax act:

Section 44AB deals with Tax audit requirements and which states as under:

“Every person,—

(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year [***]:

[Provided that in the case of a person whose—

(a) aggregate of all amounts received including amount received for sales, turnover or gross receipts during the previous year, in cash, does not exceed five per cent of the said amount; and

(b) aggregate of all payments made including amount incurred for expenditure, in cash, during the previous year does not exceed five per cent of the said payment:

[Provided further that for the purposes of this clause, the payment or receipt, as the case may be, by a cheque drawn on a bank or by a bank draft, which is not account payee, shall be deemed to be the payment or receipt, as the case may be, in cash,]

this clause shall have effect as if for the words “one crore rupees”, the words “[ten] crore rupees” had been substituted; or]

(b) carrying on profession shall, if his gross receipts in profession exceed fifty lakh rupees in any previous year; or

(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AE or section 44BB or section 44BBB, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year; or

(d) carrying on the profession shall, if the profits and gains from the profession are deemed to be the profits and gains of such person under section 44ADA and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his profession and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year; or

(e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,

get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :“

Recently the Tax audit limit for person carrying on business was extended to Rs. 10 crores from earlier requirement of 5 crore provided the the aggregate amount of payment and receipt in cash does not exceed 5% of the aggregate amount of Payment and receipt respectively.

If the amount exceeds the limit, the tax audit limit will be considered as Rs. 1 crore.

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