New Delhi, July 4, 2017
The Central Board of Direct Taxes (CBDT) has revised the tax audit form (3CD), stipulating more disclosures of information including those on monies received for immovable property and advances received in cash beyond specified limits.
The revised form also specifically refers to information on use of electronic clearing system through a bank account in addition to payments by way of account payee cheque or bank draft.
The income-tax law currently stipulates tax audit for companies with turnover exceeding Rs.2 crore in a financial year. For professionals, the threshold revenue limit for tax audit is Rs.50 lakh in a financial year.
Commenting on this development, Shalu Kedia, Associate Director at CA firm Nangia & Co, said these are elaborate disclosure requirements for companies. “They (companies) will have to report on all transactions that are in cash or otherwise, above the specified threshold. This will also mean more responsibility for the tax audit,” she said.
Amit Maheshwari, Partner, Ashok Maheshwary & Associates LLP, said the changes in Form 3CD reflect the enhanced disclosure requirements specifically in relation to electronic clearing systems.
He said that additional information would now be required to be given where the repayment of loan or deposit or any specified advance exceeding prescribed limit is received otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account.
The changes to the Form CD will come into effect from July 19 this year.
[The Hindu Business Line]