In a recent notification, CBDT has notified that Audit Report can be revised if disallowance under Section 40 or 43B of the Income Tax Act needs Recalculation.

CBDT, on 1st April 2021, has amended Income Tax rules, 1962 which may be called the ‘Income Tax (eight amendment) Rules, 2021’.

        ·        AMENDMENT No. 1 : REVISION OF TAX AUDIT REPORT IN CERTAIN CASES

Sub-rule (3) under Rule 6G has been inserted which allows revision of Tax audit report before the end of relevant assessment year for which the report pertains if there is a recalculation in amount disallowed under Section 40 or 43B.

        ·        AMENDMENT NO. 2 : AMENDMENT IN CLAUSE 8A OF FORM 3CD

Assesse will have to select whether it/he/she has chosen for taxation under Section 115BA/ 115BAA/ 115BAB/ 115BAC/ 115BAD.

The above sections relates to different rate of tax for various assesses which are given in brief as under

Section

Brief description

115BA

Tax@ 25% on certain manufacturing companies which comply with conditions specified in mentioned in section

115BAA

Tax @ 22% on certain domestic companies which comply with conditions specified in mentioned in section

115BAB

Tax on income of new manufacturing domestic companies

115BAC

Taxation of Individuals and HUF under new regime

115BAD

Tax @ 22% on certain resident co-operative societies which comply with conditions specified in mentioned in section

 

        ·        AMENDMENT NO.3 : AMENDMENT IN CLAUSE 17 OF FORM 3CD

Details of Land or Building or both transferred during the year at a value which is less than the Stamp duty value adopted or assessed or assessable by any authority of a State Government to be given in the following format:

Details of property

Consideration received or accrued

Value adopted or assessed or assessable

Whether provisions of second proviso to subsection (1) of section 43CA or fourth proviso to clause (x) of sub-section (2) of section 56 applicable?

[Yes/No]

 

 

 

 

 

        ·        AMENDMENT NO.4 : AMENDMENT IN CLAUSE 18 OF FORM 3CD

Clause No.

Amendment

(ca)

Adjustment made in WDV of Fixed Assets under Section 115BAC/115BAD

(cb)

Adjustment made in WDV of Intangible assets due to exclusion of

goodwill from block of assets

(cc)

(New clause)

Adjusted WDV


        ·        AMENDMENT NO. 5 : AMENDMENT IN CLAUSE 32 OF FORM 3CD

Details of brought forward loss or depreciation allowance to be mentioned in Form 3CD in the following manner:

Serial Number

Assessment Year

Nature of loss/ allowance (in rupees)

Amount as returned* (in rupees)

All losses/allowances not allowed under section 115BAA/ 115BAC/115BAD

Amount as adjusted by withdrawal of additional depreciation on account of opting for taxation under section 115BAC/115BAD^

Amounts as assessed (give reference to relevant

Remarks

 

 

 

 

 

 

 

 

 * If the assessed depreciation is less and no appeal pending then take assessed

^ To be filled in for assessment year 2021-2022 only.

        ·        AMENDMENT NO. 6 : OMISSION OF CLAUSE 36

Details of tax on distributed profits u/s 115-O has now been omitted.


For Official notification, click here.


Feel free to contact in case of any query or consultation.

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