Tax Audit Checklist on Clause 20 of Form 3CD Under Income Tax Act, 1961
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 7 August, 2024
Latest from Taxmann
The clause 20 of Form 3CD, requires the tax auditor to report on the bonus/commission paid to employees-shareholders in companies/employees-partners, employees-shareholders in companies/employees-partners in LLPs. This clause also requires the reporting of details of deposits with appropriate authorities of contributions received from employees for various funds (PF/ESIC), including their due dates actual dates of deposits. To assist the auditor in complying with the reporting requirement of clause 20, following checklist can be used:
- Have you ascertained from books whether any bonus/commission, paid/payable to employees?
- Whether you have obtained the details of the commission or bonus paid/payable to employees during the year?
- Are payments of bonuses/commissions to these employee-shareholders in reality bonuses or commissions payable to employees qua employees for services rendered?
- Where bonus/commission paid to employees are genuine, whether you have verified the payment is made within the time allowed by section 43B?
- Whether you have obtained Management Representation Letter (MRL) from the assessee by way of a list of various contributions recovered from the employees that come within clause 20(b)?
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
