Form 3CD is a statement of particulars that must be filed with Form 3CA/3B, as appropriate, in compliance with Rule 6G and Section 44AB.
In total, there are 41 clauses in Form 3CD (split into Part A and Part B) that contain disclosures on deductions, loans, and TDS (Tax Deducted at Source) paid, among other things.
Finally, the Form specifies the auditor’s address, name, membership number, FRN (Firm Registration Number), and signature with stamp/seal.
Elements of Form 3CD
There are two components to Form 3CD. The following is a list of its components, which are fairly extensive:
Part One contains the below Information:
Taxpayer’s Name and Address
PAN (Permanent Account Number)
If applicable, the taxpayer’s indirect tax due, such as sales tax, service tax, customs duty, excise duty, and so on.
The Returns Status
The prior year in question
Year of evaluation
The applicable section 44AB provision under which the audit was carried out
Part Two Contains the Information:
If the business is a company or a group of people, the names of the partners/members and their profit-sharing percentages must be specified.
The particulars of any change in the partners or members, or in their profit sharing ratio, from the end date of the previous year.
The nature of the company or profession. If the nature of the business or profession changes, the specifics of the shift.
Whether or not books of account are required under section 44AA, and if so, what books are required?
A list of the books of account that are kept, as well as the place where the books of account are kept.
The nature of the relevant documents examined, as well as the list of books of accounts.
Whether or whether there had been any changes in the accounting method used. If so, what effect does it have on profit or loss?
The previous year’s closing stock value method was used.
The specifics of the capital asset that has been converted to stock-in-trade.
Amounts are credited to the profit and loss account but not to the profit and loss account.
Land or buildings transferred for less than the value adopted, assessed, or assessable by any authority of a State Government referred to in section 43CA or 50C during the preceding year.
Details of depreciation allowed under the Income Tax Act of 1961 for each item or group of assets.
Bonuses or commissions are payments made to employees for services if would otherwise be given to them as profits or dividends.
Details of employee contributions to various funds.
The specifics of sums debited to the profit and loss account, including as capital, personal, advertising, and other expenses.
Section 23 of the Micro, Small, and Medium Enterprises Development Act of 2006 makes the amount of interest inadmissible.
Information on payments paid to people is named in section 40A(2) (b).
Amounts that are considered profits and gains under sections 32AC, 33AB, 33ABA, or 33AC.
There is a lot more information on Form 3CD that needs to be filled out.
