Know About Income Tax Forms 3CA, 3CB, 3CD & 3CE In India
Under Income Tax rules, certain taxpayers are required to have their accounts audited under Section 44AB. The auditor prepares an audit report and submits it using the prescribed audit form, along with additional required details.
Recommended Audit Forms
The Income Tax Department provides a variety of audit forms for submitting audit reports, including the following:
Know More About Form 3CA
If a taxpayer is engaged in a business or profession and is required to audit their accounts under a law other than the Income Tax Act, such as the Companies Act 2013, they must undergo a mandatory audit. In such cases, Form 3CA is used to submit the audit report.
Read Also: Non-Filing of ITR Leads to Tax Scrutiny: What Next?
Particulars of Form 3CA
Point 1
- It contains basic details of the taxpayers likewise his
- Name, address as well as Permanent Account Number.
- Auditor name (individual/ Firm as the case may be).
- The law under which accounts are audited (eg: Companies Act).
- Date of Audit Report.
- Duration of Profit & Loss Account/ Income & Expenditure Account. (Starting Date & End Date)
- Date of Balance Sheet.
Point 2
A declaration, the Form 3CD has been attached to the audit report.
Point 3
Description of Audit Observations/ Qualifications from the Form 3CD.
Point 4
- Place & Date of signing the audit report.
- Name, Address, and Membership Number of the Auditor.
- Stamp/ Seal of the Auditor.
Details On Form 3CB
In case a taxpayer is running a business or profession he is not required to audit his accounts under any other law.
If a proprietorship entity or partnership firm has a turnover exceeding ₹1 crore and does not opt for a presumptive income scheme, it is not required to have its accounts audited under any law other than the Income Tax Act. In such cases, Form 3CB is used to submit the audit report.
Other than either of the above-mentioned forms, the tax auditor is required to furnish Form 3CD as well. The Form 3CD forms part of the audit report and contains the prescribed particulars.
Particulars of Form 3CB
- Date of Balance Sheet.
- Duration of Profit & Loss Account/ Income & Expenditure Account. (Starting Date & End Date).
- Taxpayers' Name, address and Permanent Account Number as well.
- Address, where the books of accounts are kept
- Address of branches (in case the books are also kept at branches)
Point 3(a)
Audit Observations/ Qualifications/ Comments/ Discrepancies.
Point 3(b)
- Auditors' declaration about-
- All the information and explanations required for the audit have been obtained.
- Confirmation that the books of accounts are being maintained properly at the organisation and branches as well.
- The balance sheet and Profit & Loss Account are true and convey a fair report.
- Tells about the Form 3CD that has been attached with the audit report.
Point 5
Description of Audit observations/ discrepancies from the details prescribed in Form 3CD.
Point 6
- Place & Date of signing the audit report.
- Name, Address, and Membership Number of the auditor.
- Stamp/ Seal of the auditor.
Particulars of Form 3CD
Form 3CD is a detailed statement containing 41 points as particulars. It contains all the information related to several aspects of business and transactions at an appropriate place in the form. The Form 3CD contains a detailed explanation of each point.
Last Date to Get The Audit Report
A taxpayer must obtain the tax audit report on or before October 7th of the relevant assessment year. For FY 2023-24, the deadline to submit the audit report was September 30th, 2024.
Taxpayers required to obtain the 3CE audit report must do so by September 30th of the relevant assessment year. For each financial year, the deadline for submitting the Form 3CE audit report is September 30th.
The auditor will submit the audit report of the taxpayer's account electronically, which the taxpayer will approve before it gets filed.
Penalty for Failing to File an Audit Report
Under Section 271B of the Income Tax Act, the Assessing Officer can impose a penalty if a taxpayer fails to audit their accounts or file the required audit report. The penalty is set at a minimum of 0.5% of the total sales, turnover, or gross receipts, capped at INR 1,50,000. However, if the taxpayer can demonstrate a reasonable cause for non-compliance, the penalty may be waived.
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