A simple checklist for Clause 34 of Tax Audit Report to be Considered by Auditors:

 

Clause 34 of Form 3CD to be filed by the Tax Auditor requires reporting on compliance with TDS/TCS provisions under Chapter XVII-B (TDS) and Chapter XVII-BB (TCS) of the Income Tax Act, 1961.

Here’s a checklist for Clause 34:

1.  Clause 34(a) – TDS Compliance

Applicability

Identify whether assessee had payments requiring TDS under Chapter XVII-B (e.g., salary, interest, rent, commission, contract, etc.)

TDS Details Table

For each section under which tax was deductible:

Nature of payment

Section under which TDS is required

Total amount of payment or receipt

Amount on which TDS was deducted

Amount on which TDS was not deducted (with reasons)

Rate at which TDS was deducted

Amount of TDS deducted

Amount of TDS deposited (and date of deposit)

Disallowance u/s 40(a)(ia)

Reconcile TDS defaults with any disallowance of expenditure under section 40(a)(ia), if any.

2.  Clause 34(b) – TDS Return Filing

Quarterly Returns Filed

Form No. 24Q / 26Q / 27Q / 27EQ

Quarter and financial year

Date of filing of return

Whether filed within due date

Acknowledgement number

Corrections/Defaults

Whether any correction returns filed

Whether any intimation received under Sec 200A/206CB for defaults

3.  Clause 34(c) – Interest under Sections 201(1A) and 206C(7)

Section under which TDS/TCS was applicable

Amount of interest payable u/s 201(1A) or 206C(7)

Nature of delay: late deduction / late deposit

Whether interest paid: Yes/No

If yes, date and challan details

If no, reasons for non-payment