Central Board of Direct Taxes (CBDT) has issued Notification No 28/2021 to further amend Income Tax Rules, 1961 in order to revise the tax audit report (Form 3CD) and to make changes in the Form due to the introduction of new clauses pertaining to concessional tax regime.
Key points of the amendments are:
1. After sub rule (2) of Rule 6G relating to Report of audit of accounts to be furnished under Section 44AB, a new subrule (3) has been inserted to provide that the report of audit furnished under this rule may be revised by the assessee by getting revised report of audit from an accountant, duly signed and verified by such accountant, and furnish it before the end of the relevant assessment year for which the report pertains, if the payment has been made by such assessee after furnishing of such report which necessitates recalculation of disallowance made under section 40 (i.e Amounts not deductible) or section 43B (i.e. Certain deductions to be only on actual payment).
2. Clause 8A of Form in Part A of Form 3D relating to the Statement of particulars required to be furnished under section 44AB of the Income-tax Act, 1961 has been substituted to include that whether or not the assessee has opted for taxation under section 115BAC (Tax on income of individuals and Hindu undivided family) / 115BAD (Tax on income of certain resident co-operative societies).
3. Clause 17 of Part B of Form 3D containing the statement of particulars relating to where any land or building or both is transferred during the previous year for a consideration less than value adopted or assessed or assessable by any authority of a State Government referred to in section 43CA or 50C has been substituted to include whether provisions of second proviso to subsection (1) of section 43CA or fourth proviso to clause (x) of sub-section (2) of section 56 is applicable or not?
The second proviso to subsection (1) of section 43CA or fourth proviso to clause (x) of sub-section (2) of section 56 has been substituted through Finance Act, 2021 where it has been provided that the taxpayer can sell the residential unit between 12th November, 2020 and ending on the 30th day of June, 2021, in such case the difference between the sale consideration and stamp duty value shall not be more than 20% provided that the residential unit has been allotted for first time and the consideration so received shall not be more than INR 2 crores.
4. Sub clauses (ca) and (cb) of in clause 18 of Part B relating to Particulars of depreciation allowable as per the Income-tax Act, 1961 in respect of each asset or block of assets, as the case may be
of Form 3D has been substituted to include the following details:
(ca) Adjustment made to the written down value under section 115BAC/115BAD (for assessment year 2021-2022 only) and;
(cb) Adjustment made to written down value of Intangible asset due to excluding value of goodwill of a business or profession;
(cc) Adjusted written down value
5. Sub clause (a) of Clause 32 of details of brought forward loss or depreciation allowance, in the following manner, to the extent available of Part B of Form 3D relating to the Statement of particulars required to be furnished under section 44AB of the Income-tax Act, 1961 has been substituted in order to include the following details in such table relating to the details of brought forward loss or depreciation allowance for the assessment year 2021-2022 only-
a) All losses/allowances not allowed under Section 115BAA/115BAC/115BAD
b) Adjusted by withdrawal of additional depreciation on account of opting for taxation under section 115BAC/115BAD.
For further details, please refer the attached document
Source: Central Board of Direct Taxes (CBDT)
