Checklist for Clause 12 of Form 3CD in Tax Audit Under the Income Tax Act, 1961

Clause 12 requires the tax auditor to report whether the profit and loss account includes any profits and gains assessable on a presumptive basis. If yes, the tax auditor is required to indicate the amount and the relevant sections as mentioned below.

• 44AD Eligible business
• 44AE Transport business
• 44B Shipping business of a non-resident
• 44BB Providing service or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils
• 44BBA Operation of aircraft by non-resident
• 44BBB Civil construction, etc., in certain turnkey power projects by non-residents
• Chapter XII-G Special provisions relating to Shipping Companies (Section 115V to 115VT)
• First Schedule Insurance Business

Any other relevant section This refers to the sections not listed above under which income may be assessable on a presumptive basis, like section 44D and section 115A(1)(b), and will include any other section that may be enacted in the future for presumptive taxation

It may be noted that Section 44AF is non-operative with effect from the assessment year 2011-12.

This story provides a detailed audit checklist to help tax auditors report effectively under Clauses 12 of Form 3CD.

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