Key Amendments to Tax Audit Report (Form 3CD) – Effective from April 1, 2025 (FY 24/25):

 

1. Additional reporting for MSME payments in Clause (22):

• Total amount required to be paid to MSMEs under Section 15 of the MSMED Act.

• Amount breakdown: paid vs. unpaid till the due date.

2. Omission of Clauses (28) & (29) with respect to Angel Taxation i.e. Sec 56(2)(viia) & 56(2)(viib) on account of omission of above provisions

3. Changes in Clause (31) – Loans, Deposits & Advances:

• Updated item (ii) under sub-clauses (a), (b), and (c):

• Requires reporting each loan/deposit taken or accepted along with its nature code (to be selected from a dropdown).

• Similarly, for each repayment or advance given, nature code is required.

• Introduced standardized codes for different types of payments/receipts, including:

• A – Cash Payment

• B – Cash Receipt

• C – Payment via non-account payee cheque

• D – Receipt via non-account payee cheque

• E – Transfer of Asset

• F – Transfer of Liability

• G – Conversion of Assets

• H – Conversion of Liabilities

• I – Journal Entry (Debit)

• J – Journal Entry (Credit)

• K – Any other mode (Debit)

• L – Any other mode (Credit)

4. New Clause (36B) –Buyback of Shares:

• Requires reporting of any amount received for buyback of shares under section 2(22)(f).

• Details required:

• Amount received (Rs.)

• Cost of acquisition of shares bought back.

The above changes will be effective from April 1, 2025.