\n| Compliance Reporting<\/td>\n | Basic<\/td>\n | Extended & Specific<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/span>4. New Clauses Inserted in Form 3CD<\/span><\/span><\/h3>\n\n \n\n\n| Clause<\/th>\n | Particulars<\/th>\n<\/tr>\n | \n| 29C<\/td>\n | Loans \/ Deposits accepted<\/td>\n<\/tr>\n | \n| 29D<\/td>\n | Repayment of Loans\/Deposits<\/td>\n<\/tr>\n | \n| 29E<\/td>\n | Cash Deposits<\/td>\n<\/tr>\n | \n| 29F<\/td>\n | Cash Withdrawals<\/td>\n<\/tr>\n | \n| 29G<\/td>\n | Share Application Money Received<\/td>\n<\/tr>\n | \n| 29H<\/td>\n | Share Application Money Pending Allotment<\/td>\n<\/tr>\n | \n| 29I<\/td>\n | Share Application Money Adjusted<\/td>\n<\/tr>\n | \n| 29J<\/td>\n | Shares Allotted<\/td>\n<\/tr>\n | \n| 29K<\/td>\n | Share Application Money Refunded<\/td>\n<\/tr>\n | \n| 29L<\/td>\n | Outstanding Loan\/Deposit Balances<\/td>\n<\/tr>\n | \n| 29M<\/td>\n | Investments, Guarantees & Securities u\/s 185\/186<\/td>\n<\/tr>\n | \n| 44EB<\/td>\n | Compliance with Section 94B<\/td>\n<\/tr>\n | \n| 44F<\/td>\n | Adverse Audit Opinion \/ Disclaimer<\/td>\n<\/tr>\n | \n| 44G to 44K<\/td>\n | Search, Seizure, Limitation, Books Not Maintained, Cash Losses etc.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/span>5. Major Amendments in Existing Clauses<\/span><\/h3>\n\n \n\n\n| Clause<\/th>\n | Key Change<\/th>\n<\/tr>\n | \n| Clause 3<\/td>\n | More depreciation disclosures<\/td>\n<\/tr>\n | \n| Clause 5<\/td>\n | Detailed Capital Work-in-Progress reporting<\/td>\n<\/tr>\n | \n| Clause 6<\/td>\n | Detailed Intangible Asset reporting<\/td>\n<\/tr>\n | \n| Clause 7<\/td>\n | Enhanced Physical Stock Verification reporting<\/td>\n<\/tr>\n | \n| Clause 8<\/td>\n | More details of Debtors\/Creditors\/Loans<\/td>\n<\/tr>\n | \n| Clause 9<\/td>\n | Detailed Chapter VI-A deduction reporting<\/td>\n<\/tr>\n | \n| Clause 10<\/td>\n | Specified Person Transactions reporting<\/td>\n<\/tr>\n | \n| Clause 12<\/td>\n | Expanded Section 43B reporting<\/td>\n<\/tr>\n | \n| Clause 13<\/td>\n | Detailed TDS\/TCS reporting<\/td>\n<\/tr>\n | \n| Clause 17<\/td>\n | Stock-in-Trade to Capital Asset conversion reporting<\/td>\n<\/tr>\n | \n| Clause 18<\/td>\n | Detailed Loss & Depreciation reporting<\/td>\n<\/tr>\n | \n| Clause 20<\/td>\n | Exempt Income expenditure reporting<\/td>\n<\/tr>\n | \n| Clause 21<\/td>\n | Expanded penalty and disallowance reporting<\/td>\n<\/tr>\n | \n| Clause 22-28<\/td>\n | Additional disclosures and clarifications<\/td>\n<\/tr>\n | \n| Clause 30 & 31<\/td>\n | More detailed transaction reporting<\/td>\n<\/tr>\n | \n| Clause 32 & 33<\/td>\n | Enhanced taxation disclosures<\/td>\n<\/tr>\n | \n| Clause 34-43<\/td>\n | Several clauses expanded<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/span>6. Impact on Taxpayers & Auditors<\/span><\/span><\/h3>\n\n \n\n\n| Area<\/th>\n | Impact<\/th>\n<\/tr>\n | \n| Compliance Burden<\/td>\n | Increased<\/td>\n<\/tr>\n | \n| Documentation<\/td>\n | More records to maintain<\/td>\n<\/tr>\n | \n| Audit Verification<\/td>\n | More detailed checking required<\/td>\n<\/tr>\n | \n| Notices & Scrutiny<\/td>\n | Higher possibility due to detailed reporting<\/td>\n<\/tr>\n | \n| Internal Controls<\/td>\n | Need strengthening<\/td>\n<\/tr>\n | \n| Governance<\/td>\n | Improved transparency and accountability<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/span>7. Who Will Be Affected?<\/span><\/span><\/h3>\n\n \n\n\n| Category<\/th>\n | Impact<\/th>\n<\/tr>\n | \n| Companies<\/td>\n | Yes<\/td>\n<\/tr>\n | \n| LLPs<\/td>\n | Yes<\/td>\n<\/tr>\n | \n| Partnership Firms<\/td>\n | Yes<\/td>\n<\/tr>\n | \n| Proprietorships<\/td>\n | Yes<\/td>\n<\/tr>\n | \n| Other Assessees requiring Tax Audit<\/td>\n | Yes<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/span>8. Action Checklist for Taxpayers<\/span><\/span><\/h3>\n\n \n\n\n| Action Required<\/th>\n | Purpose<\/th>\n<\/tr>\n | \n| Strengthen Internal Controls<\/td>\n | Improve compliance<\/td>\n<\/tr>\n | \n| Maintain Loan & Deposit Records<\/td>\n | Clause 29 reporting<\/td>\n<\/tr>\n | \n| Track Cash Transactions<\/td>\n | Cash deposit\/withdrawal disclosures<\/td>\n<\/tr>\n | \n| Maintain Share Capital Records<\/td>\n | Share application money reporting<\/td>\n<\/tr>\n | \n| Ensure TDS\/TCS Compliance<\/td>\n | Clause 34 reporting<\/td>\n<\/tr>\n | \n| Review Section 43B Items<\/td>\n | Expanded disclosure<\/td>\n<\/tr>\n | \n| Reconcile Books Regularly<\/td>\n | Reduce audit qualifications<\/td>\n<\/tr>\n | \n| Maintain Documentary Evidence<\/td>\n | Support detailed reporting<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/span>Practical CA Takeaway<\/span><\/span><\/h3>\n\n \n\n\n| Highest Risk Areas<\/th>\n | Why Important<\/th>\n<\/tr>\n | \n| Clause 29 Series<\/td>\n | Loans, deposits, cash transactions<\/td>\n<\/tr>\n | \n| Clause 13\/34<\/td>\n | TDS-TCS compliance<\/td>\n<\/tr>\n | \n| Clause 12<\/td>\n | Section 43B reporting<\/td>\n<\/tr>\n | \n| Clause 17<\/td>\n | Conversion of stock-in-trade\/capital assets<\/td>\n<\/tr>\n | \n| Clause 20 & 21<\/td>\n | Exempt income and disallowances<\/td>\n<\/tr>\n | \n| Clause 44 Series<\/td>\n | Search, seizure, audit observations, cash losses<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n ![\"tax](\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/10\/1784427326479.jpg\") <\/p>\n
Form 3CD has evolved from a basic summary reporting document into a comprehensive transaction-based compliance report. Tax auditors are now required to perform more detailed verification and provide granular disclosures on areas such as loans and deposits, cash transactions, share capital movements, TDS\/TCS compliance, and Section 43B-related disallowances.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Role of different accounting professionals on Tax Audit in India This is a significant development in the ongoing debate over the role of different accounting professionals in India. ICAI President Charanjot Singh Nanda’s firm stance on reserving tax audits and other audit functions exclusively for chartered accountants highlights the longstanding jurisdictional boundaries between ICAI, ICSI, …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[98],"tags":[560],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8741"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=8741"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8741\/revisions"}],"predecessor-version":[{"id":11013,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8741\/revisions\/11013"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=8741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=8741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=8741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} | | | | | | |
![\"FAQ\u2019s](\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/FAQs-on-Tax-Audit-Under-Income-Tax-Act.jpg\")
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