Know about the changes in the New Tax Audit Report in Form No. 3CD

 

1.  Introduction of Clause 36B for Buyback Receipts – Disclosure of the buyback receipts of shares under section 2(22)(f) has to be reported along with the following details:
(a) Amount received for buyback of shares
(b) Cost of acquisition of shares bought back

2. Introduction of Code in Clause 31
CBDT has introduced a new code system for transactions in Clause 31, which deals with loans, deposits and repayments. The code categorises the nature of amounts/receipts/repayments involved in loans, deposits, and specified advances. Examples of codes include:
– Cash payment (Code A)
– Cash receipt (Code B)
– Payment through non-account payee cheques (Code C)
– Transfer of assets (Code E), etc.

3. Clauses 28 and 29 deleted
Clauses 28 and 29 have been omitted from the Form 3CD. These clauses were used to report disclosures related to the receipt of the unlisted company for inadequate consideration under Section 56(2)(viia) & reporting of the receipt of consideration exceeding the fair market value under Section 56(2)(viib).

4. Modifications to Clause 22 – Inadmissibility under MSMED Act

Clause 22 requires reporting of the amount of interest inadmissible under Section 23 of MSMED Act, 2006 or any other amount not allowable under section 43B(h) of the Act. Clause 22 now includes a bifurcation of amounts disallowed under Section 43B(h). It seeks the reporting in the following manner:

(a) Total amount payable to a micro or small enterprise under Section 15 of MSMED Act.
(b) Amount paid within the time limit under Section 15.
(c) Amount not paid within the time limit and inadmissible for the previous year.