Income-tax 7th Amendment Rules 2014 Substituting Audit Forms

GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF DIRECT TAXES) New Delhi, the 25th July, 2014

NOTIFICATION

INCOME-TAX

S.O. 1902 (E) In exercise of the powers conferred by section 295 read with section 44AB of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. (1) These rules may be called the Income-tax ( 7th Amendment) Rules, 2014. (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in Appendix-II, for Form No. 3CA, Form No. 3CB and Form No. 3CD, the following forms shall be substituted, namely:-

FORM NO. 3CA [See rule 6G(1)(a)] Audit report under section 44AB of the Income - tax Act, 1961, in a case where the accounts of the business or profession of a person have been audited under any other law *I / we report that the statutory audit of M/s. _________________ ( Name and address of the asseessee with Permanent Account Number) was conducted by me / us / M/s. ____________________________________________________in pursuance of the provisions of the___________________________Act, andI/we annex hereto a copy of *my / our / their audit report dated _______________________along with a copy of each of :-

• (a) the audited *profit and loss account / income and expenditure account for the period beginning from ----------------------to ending on -----------------------------.
• (b) the audited balance sheet as at, _____; and
• (c) documents declared by the said Act to be part of, or annexed to, the *profit and loss account / income and expenditure account and balance sheet.

2. The statement of particulars required to be furnished under section 44AB is annexed herewith in Form No. 3CD.
3. In *my / our opinion and to the best of *my / our information and according to examination of books of account including other relevant documents and explanations given to *me / us, the particulars given in the said Form No.3 CD are true and correct subject to the following observations/qualifications, if any:

• a.
• b.
• c. ……………................................................... **(Signature and stamp/Seal of the signatory)

Place : ______________ Name of the signatory ……………………… Date : ______________ Full address ………………………………….

Notes :

1. • Delete whichever is not applicable
2. **This report has to be signed by a person eligible to sign the report as per the provisions of section 44AB of the Income-tax Act, 1961.
3. Where any of the requirements in this Form is answered in the negative or with qualification, give reasons therefor.
4. The person who signs this audit report shall indicate reference of his membership number / certificate of practice / authority under which he is entitled to sign this report.

FORM NO. 3CB [See rule 6G(1)(b)] Audit report under section 44AB of the Income - tax Act 1961, in the case of a person referred to in clause (b) of sub - rule (1) of rule 6G

1. *I / we have examined the balance sheet as on, ____, and the *profit and loss account / income and expenditure account for the period beginning from ----------------------to ending on -----------------., attached herewith, of ______________________________( Name ), _______________(Address), ____________(Permanent Account Number).
2. *I / we certify that the balance sheet and the *profit and loss / income and expenditure account are in agreement with the books of account maintained at the head office at _____________ and ** ___________ branches. 3.(a) *I / we report the following observations / comments / discrepancies / inconsistencies; if any: (b) Subject to above, -

• (A) *I / we have obtained all the information and explanations which, to the best of *my / our knowledge and belief, were necessary for the purpose of the audit.
• (B) In my / our opinion, proper books of account have been kept by the head office and branches of the assessee so far as appears frommy / our examination of the books.
• (C) In *my / our opinion and to the best of *my / our information and according to the explanations given to *me / us, the said accounts, read with notes thereon, if any, give a true and fair view :-
  • (i) in the case of the balance sheet, of the state of the affairs of the assessee as at 31st March, ;and
  • (ii) in the case of the *profit and loss account / income and expenditure account of the *profit / loss or *surplus / deficit of the assessee for the year ended on that date.

4. The statement of particulars required to be furnished under section 44AB is annexed herewith in Form No.3CD.

5. In *my/our opinion and to the best of *my / our information and according to explanations given to *me / us, the particulars given in the said Form No.3 CD are true and correct subject to following observations/qualifications, if any:

• a.
• b.
• c. ……………................................................... ***(Signature and stamp/seal of the signatory)

Place : ______________ Name of the signatory ……………………… Date : ______________ Full address …………………………………. Notes :

1. *Delete whichever is not applicable.
2. **Mention the total number of branches.
3. ***This report has to be signed by person eligible to sign the report as per the provisions of section 44AB of the Income-tax Act, 1961.
4. The person, who signs this audit report, shall indicate reference of his membership number / certificate of practice number / authority under which he is entitled to sign this report.

FORM NO. 3CD

[See rule 6 G(2)]

Statement of particulars required to be furnished under section 44AB of the Income-tax Act, 1961

PART - A

1. Name of the assessee

2. Address

3. Permanent Account Number (PAN)

4. Whether the assessee is liable to pay indirect tax like excise duty, service tax, sales tax, customs duty,etc. if yes, please furnish the registration number or any other identification number allotted for the same

5. Status

6. Previous year from……………..to ……………

7. Assessment year

8. Indicate the relevant clause of section 44AB under which the audit has been conducted

PART - B

9. (a) If firm or association of persons, indicate names of partners/members and their profit sharing ratios.

(b) If there is any change in the partners or members or in their profit sharing ratio since the last date of the preceding year, the particulars of such change

10. (a) Nature of business or profession (if more than one business or profession is carried on during the previous year, nature of every business or profession)

(b) If there is any change in the nature of business or profession, the particulars of such change.

11. (a) Whether books of account are prescribed under section 44AA, if yes, list of books so prescribed.

(b) List of books of account maintained and the address at which the

books of accounts are kept.

(In case books of account are maintained in a computer system, mention the books of account generated by such computer system. If the books of accounts are not kept at one location, please furnish the addresses of locations along with the details of books of accounts maintained at each location. )

(c) List of books of account and nature of relevant documents examined.

12. Whether the profit and loss account includes any profits and gains assessable on presumptive basis, if yes, indicate the amount and the relevant section (44AD, 44AE, 44AF, 44B, 44BB, 44BBA, 44BBB, Chapter XII-G, First Schedule or any other relevant section.)

13.(a) Method of accounting employed in the previous year

(b) Whether there had been any change in the method of accounting employed vis-a-vis the method employed in the immediately preceding previous year.

(c) If answer to (b) above is in the affirmative, give details of such change,

and the effect thereof on the profit or loss.

(d) Details of deviation, if any, in the method of accounting employed in the previous year from accounting standards prescribed under section 145 and the effect thereof on the profit or loss.

Serial number Particulars Increase in profit (Rs.) Decrease in profit (Rs.)

14. (a) Method of valuation of closing stock employed in the previous year.

(b) In case of deviation from the method of valuation prescribed under section 145A, and the effect thereof on the profit or loss, please furnish:

Serial number Particulars Increase in profit (Rs.) Decrease in profit (Rs.)

15. Give the following particulars of the capital asset converted into stock-in- trade: -

• (a) Description of capital asset;
• (b) Date of acquisition;
• (c) Cost of acquisition;
• (d) Amount at which the asset is converted into stock-in-trade.

16. Amounts not credited to the profit and loss account, being, -

• (a) the items falling within the scope of section 28;

• (b) the proforma credits, drawbacks, refund of duty of customs or excise or service tax, or refund of sales tax or value added tax where such credits, drawbacks or refunds are admitted as due by the authorities concerned;

• (c) escalation claims accepted during the previous year;

• (d) any other item of income;

• (e) capital receipt, if any.

17. Where any land or building or both is transferred during the previous year for a consideration less than value adopted or assessed or assessable by any authority of a State Government referred to in section 43CA or 50C, please furnish:

Details of property Consideration received or accrued Value adopted or assessed or assessable

18.Particulars of depreciation allowable as per the Income-tax Act, 1961 in respect of each asset or block of assets, as the case may be, in the following form :-

• (a) Description of asset/block of assets.

• (b) Rate of depreciation.

• (c) Actual cost of written down value, as the case may be.

• (d) Additions/deductions during the year with dates; in the case of any addition of an asset, date put to use; including adjustments on account of –

• i) Central Value Added Tax credits claimed and allowed under the Central Excise Rules, 1944, in respect of assets acquired on or after 1st March, 1994,

• ii) change in rate of exchange of currency, and

• iii) subsidy or grant or reimbursement, by whatever name called.

• (e) Depreciation allowable.

• (f) Written down value at the end of the year

19. Amounts admissible under sections:

20. (a) Any sum paid to an employee as bonus or commission for services rendered, where such sum was otherwise payable to him as profits or dividend. [Section 36(1)(ii)]

(b) Details of contributions received from employees for various funds as referred to in section 36(1)(va):

Serial number Nature of fund Sum received from employees Due date for payment The actual amount paid The actual date of payment to the concerned authorities

21. (a) Please furnish the details of amounts debited to the profit and loss account, being in the nature of capital, personal, advertisement expenditure etc Nature Serial number Particulars Amount in Rs.

Capital expenditure

Personal expenditure

Advertisement expenditure in any souvenir, brochure, tract, pamphlet or the like published by a political party

Expenditure incurred at clubs being entrance fees and subscriptions