Checklist for Clauses 5 to 8 of Form 3CD in Tax Audit under the Income Tax Act, 1961

Section 44AB of the Income Tax Act, 1961, mandates that the books of accounts of an assessee engaged in a business or profession be audited if their gross turnover or receipts exceed the specified threshold limit. Form 3CD is a detailed statement of particulars required to be furnished under Section 44AB of the Income Tax Act, 1961. It is used by a tax auditor to report the audit of the books of accounts of an assessee whose turnover or receipts exceed the prescribed threshold. The form ensures compliance with various provisions of the Income Tax Act and helps in the accurate assessment of income.

Part A of Form No. 3CD requires routine particulars, which include the following:

• Clause 5: This clause requires to report the status of the assessee as defined under Section 2(31) of the Income Tax Act, 1961 (i.e., Individual, HUF, Firm, Company, AOP, BOI, AJP).
• Clause 6: This clause requires to report the period of the tax audit. For income tax purposes, a uniform previous year of 12 months ending on 31st March is required.
• Clause 7: This clause requires reporting the details of the assessment year relevant to the previous year for which the accounts are audited.
• Clause 8: This clause requires to indicate the relevant clause of Section 44AB under which the audit has been conducted.

In this story, we have discussed the checklist for clauses 5 to 8 of Form 3CD.

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