“The report of audit furnished under this rule may be revised by the person 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 there is payment by such person after furnishing of report under sub-rule (1) and (2) which necessitates recalculation of disallowance under section 40 or section 43B,” the Board mentioned in a notification issued Friday.
Section 40 refers to quantities that aren’t deductible whereas computing revenue chargeable underneath earnings and beneficial properties of enterprise or career, whereas Section 43B refers to quantities that may be deducted on precise funds made by the assessee.
The Board has accordingly modified the Form 3CD – for submitting the tax audit report – the place a clause has been added to Part A to say the taxation possibility chosen by the assessee underneath the concessional tax regime which the federal government had launched in 2019 and introduced into impact in the earlier Union Budget.
India had decreased the company tax charge for present corporations to 22% and for brand spanking new manufacturing items to fifteen% topic to the situation that corporations don’t avail any exemption or deductions.
Part B of the tax audit type will now embody assessed worth of any non-movable asset akin to land, constructing or each, transferred in the course of the earlier yr for consideration lower than worth adopted or assessed or assessable by any authority of a state authorities.
The amendments to the Form 3CD additionally embody point out of exclusion of depreciation on goodwill of a enterprise or career and adjustment to the written down worth of intangible asset, in addition to particulars of introduced ahead loss or depreciation allowance.
In the Union Budget 2021, the federal government had amended the Finance Act, underneath which written down worth of goodwill carried ahead from earlier years will likely be excluded or decreased from the written down worth of block of property from evaluation yr 2021-22 onwards.