Revised Form 3CD in Excel Format
Form 3CD is issue by CBDT in accordance with Section 44AB of the Indian Income Tax Act 1961. According to Section 44AB, a person requires to file tax audit report if turnover from business is more than 1 Crore or turnover from Professional is more than 50 Lacs. However, the threshold limit of INR 1crore has been increased to INR 10 crore (with effect from A.Y. 2021-2022) in case the cash receipt or cash payment does not exceed 5% of total receipts and payment made during the year. At the end of article, you can download Revised Form 3CD in Excel Format.
Following type of persons is required to get account audited by a Chartered Accountant: –
1) The person who is doing business and his/her sale/Turnover from Business is exceeds Rs 1 Crore (with specified conditions) or Rs 10 Crore.
2) The person who is in profession and gross receipts from Profession is Exceeds Rs 50 Lakhs.
3) The person who is doing business or is in profession and is covered under the Income Tax Provisions of Section 44AD, 44ADA, 44AE, 44AF, 44BBB and claimed that his income from the said business or profession is lower than the deemed profit and gains.
However, Finance Act 2020 has done major amendments related to Tax Audit applicability to reduce compliance burden on medium and small enterprises. Tax audit limit has been increased from One crore to Ten crore if following conditions satisfied :-
1) Aggregate of all receipts in cash does not exceed 5% of such receipt during the previous year and
2) Aggregate of all payment in cash does not exceed 5% of such payment during the previous year and
However, as per section 44AD, an assesse is required to get his book of account audited if he is showing his income or profit from eligible business below 8% or 6%.
Tax audit required with Examples:-
For Business Assessee Individual / HUF / Firm :-
| Section under which audit is required | Turnover | Eligible Business and Eligible assessee | Cash Receipt and cash payment % | Profit of Income | Audit Requirement |
| Section 44AD | Up to 1 Cr | Yes | NA | Less than 8% or 6% | Yes |
| Section 44AD | 1 to 2 Cr | Yes | Less than or equal to 5% | Less than 8% or 6% | Yes |
| Section 44D | 1 to 2 Cr | Yes | Greater than 5% | Less than 8% or 6% | Yes |
| Section 44AB | 2 to 10 Cr | NA | Greater than 5% | NA | Yes |
| Section 44AB | 10 Cr or more | NA | NA | NA | Yes |
Tax Audit requirement for Professionals:-
| Receipts | Profit of Income (%) | Audit Requirement | Section under which audit is required |
| More than 50 Lakh | NA | Yes | Section 44AB |
| Less than 50 Lakh | Less than 50% | Yes | Section 44ADA |
| Less than 50 Lakh | More than 50% | No | NA |
Tax Audit not required with examples:-
Business Assessee Individual / HUF / Firm:-
| Turnover | Eligible Business and Eligible Assessee | Cash receipt and cash payment % | Profit of Income | Audit Required |
| Upto 1 Cr | Yes | NA | Greater than or equal to 8% or 6% | No |
| 1 to 2 Cr | Yes | Less than or Equal to 5% | Greater than or equal to 8% or 6% | No |
| 1 to 2 Cr | Yes | Greater than 5% | Greater than or equal to 8% or 6% | No |
| 2 to 10 Cr | NA | Less than or Equal to 5% | NA | No |
Eligible Assessee: – Resident Individual, HUF and Partnership Firm other than LLP partnership firm.
Eligible Business for section 44AD:- Any Business other than mentioned in Section 44AA or commission or brokerage or any agency business
Legal or Medical or Engineering or Architectural profession or the profession of accountancy or Technical consultancy or interior decoration profession covered under section 44AA.
Tax Audit Report: – The tax auditor is required to furnish the audit report in Form 3CA or Form 3CB.
a). Form 3CA is furnished when the taxpayer is already audited under any other law.
b). Form 3CB is to be furnished when the taxpayer carrying on business or profession is not required to be audited under any other law.
In any of the reports furnished above, the tax auditor is required to furnish the prescribed details in Form 3CD which forms part of the tax audit report.
As books and records of the organization are required to be audited under various laws such as Company audit/ Statutory Audit under Company Law, Cost Audit, Stock Audit etc.; The Income Tax Act requires the accounts and other records of the business or profession of the tax payers to be audited as per the provisions of Section 44AB of the Income Tax Act by a practicing Chartered Accountant (i.e. a Chartered Accountant holding Certificate of Practice).
The tax audit report is to be filed by the tax auditor online using his CA login details. The tax payer is required to add the CA through his income tax login. Once the tax auditor furnishes the audit report on the income tax portal, the tax payer is required to accept/ reject the audit report through his income tax login. If rejected by the tax payer, the whole process has to be repeated.
Download here Revised Form 3CD for AY 2023-24 in excel Format.
Last Changes in Form 3CD : See below the content of Notification No 82/2020 dated 1st October 2020 issue for changes done in Form 3CD: –
1. Clause 8a has been inserted after clause 8
Caluse 8a – Whether the assessee has opted for taxation under section 115BA/115BAA/115BAB.
2. Clause 18(ca) and Clause 18(cb) has been inserted after clause 18(c).
Clause 18(ca) – Adjustment made to the written down value under section 115BAA (for assessment year 2020-21 only)
Clause 18(cb) – Adjusted written down value
3. Sub Clause 32(a) substituted the existing clause 32(a)
Clause 32(a)(1) – Serial No.
Clause 32(a)(2) – Assessment Year
Clause 32(a)(3) – Nature of loss / Allowance (in rupees)
Clause 32(a)(4) – Amount as returned (in rupees) (If the assessed depreciation is less and no appeal pending than take assessed.
Clause 32(a)(5) – All Losses/allowances not allowed under 115BAA
Clause 32(a)(6) – Amount as adjusted by withdrawal of additional depreciation on account of opting for taxation under section 115BAA (to be filled in for assessment year 2020-21 only)
Clause 32(a)(7) – Amounts as assessed (give reference to relevant order)
Clause 32(a)(8) – Remarks
Due Date for Filing Tax Audit Report: – Due date for filing the Tax Audit Report under section 44AB for Financial year 2021-22 is 30th September 2022 in case of a corporate assessee or non corporate assessee who is required to his / its return of income tax on 31st October 2022. Tax Audit Report due date in case of assessee who is also required to submit a report pertaining to international or specified domestic transactions under section 92E is 31st October 2022.
Penalty for Non Filing of Tax Audit Report: -Under Section 271B, if a person who is require to get his account audit by chartered accountant and does not get his accounts audited or file the audit report then assessing officer may impose a penalty of .05% of the total sales, gross receipt or turnover which can go up to INR 1,50,000. If the taxpayer gives reasonable cause for non-filing of tax audit report, the penalty can be waived.
Penalty for Non Filing of Tax Audit Report: -Under Section 271B, if a person who is require to get his account audit by chartered accountant and does not get his accounts audited or file the audit report then assessing officer may impose a penalty of .05% of the total sales, gross receipt or turnover which can go up to INR 1,50,000.
Also See, “GSTR 9 in Excel Format“
Also See. “GSTR 9C in Excel Format“
Also See, “Form 10B and 10BB in Excel Format“
Also See, “E-Invoice under GST”
Also See, “TDS Rate for FY 2022-23″
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Also See, “Update Guidance Note on Tax Audit under Section 44AB“
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