• Sep
  • 01
  • 2013

3CB/3CD E-Filing Utility – Turning Into Harassment of Professionals

Posted In Income Tax | , | 31 Comments » Print Friendly and PDF

CA Sudhir Halakhandi

The xml utility of E-filing of Tax audit report is under process of continuous alterations, amendments, modifications and the last in this series of is introduced on 24th Aug 2013.

Our first question is that why so many amendments, modification, alterations are required in this utility. The answer is very simple because it has so many shortcomings in it. OK, then the standard process in this respect should be “pre-launching test” and one can easily presume by going through the circumstances that this was not done seriously by makers of this utility.

When the utility was first introduced it was changed immediately after getting the feedback from the users and in that case a perfect , the new and revised utility, should be there to satisfy the all the needs of procedural aspect of the law by removing all the shortcomings experienced and reported  by the professionals. But this was not done in this  case. The improvement was not perfect and there are several changes in last month in the utility which is causing the harassment to the professionals.

See, here why we are calling it harassment to the professionals, there are some reasons:-

1. They are not mentioning anywhere on the e-filing site that a  New utility is introduced.

2. They are not mentioning anywhere on the e-filing site that what type of changes have been introduced by replacing the existing utility.

3. The private software manufacturers are taking their own time in making corrections in their software due to sudden and frequent changes.

4. If you have prepared and filled the utility and saved it but before uploading the same a new utility is introduced,  then you have to fill it again because the system is not accepting the Old utility.

See the effect of point No.3, 7 xml utilities were prepared in our office up to 23 rd Aug 2013 but the uploading is pending because it is not finally checked by us but on 24th Aug 2013 the New utility was introduced and while uploading the XML utility  we came to know this fact with a “error message” and now have to prepare and refill all the figures in new utility for all these cases.

Why this is being done –

1. No responsibility is fixed for the persons who prepared the utility for it’s shortcomings.

2.  Nobody is responsible for half hearted corrections.

3. The principal of trial and error is going on for ultimate search of excellence.

4. No pre-launching test is being performed before introduction of utility.

6. There is a feeling at their level that they are the bosses hence there is no respect for the professionals and tax payer public so they have no courtesy to inform them about new introduction and type of changes.

Now the situation is that the system is not perfect and the professionals are facing difficulties in completing the task and it is clear cut case of “Extension of date” and surely they will extend it but as evidenced by their previous  history,   not before harassing the professionals and tax payer public . As per our predictions, they will introduce a date extension at 4 PM on 30th Sept 2013 i.e. on the last date for it.

Now in our opinion the circumstances at present demanding an extension of date for at least 2 months and it should be declared immediately and after this declaration there should be a thorough modification of the utility and introduction of a perfect utility. Still we are testing the new utility but at present we are of the opinion that it is not the final utility and soon they will introduce a new one because still we have notices that :-

1. There is no facility in the utility to view the Form 3CB/3CB and it is not easy to view and check the form in XML.

2. The curser is still “Dancing down” here and there when we put it on a drop down Box creating irritation to the user.

3. The corrected Depreciation utility still has problems and in the Form CD in item No.14 column No.2 does not display the rate of Depreciation and instead of it , it is repeating the figures of column No.1.

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-CA Sudhir Halakhandi

-CA Abhas Halakhandi

“Halakhandi”

Laxmi Market

Beawar-305901(Raj)

Cell- 9828067256

MAIL –sudhirhalakhandi@gmail.com


31 Responses to “3CB/3CD E-Filing Utility – Turning Into Harassment of Professionals”

  1. TUSHAR says:

    Will we get extension of filing of return or not

  2. A.C.NAGARAJA PRASAD, B.COM., F.C.A., says:

    I understand that the Audit and 3CD software is once again modified. Still there are very cumbersome & most tedious points. To cite an example the requirement of elaborate details of loan Creditors with addresses,PANs, Amounts received etc., in Cl.24(a) and again the same details with amount paid in clause 24(b)and details of Relative payments under clause 18.
    To sum up,these new requirements & alterations in procedures are very cumbersome, unreasonably lot of time-consuming & most tedious and I fully agree that these are pure harassment of assessees and professionals at this juncture. As I already said, the benefit to the Govt. is almost nothing as it does not generate any extra revenue. Even if it contributes something to data bank it is not at all worthwhile to subject lot of lower & middle class tax payers to this enormous difficulty & displeasure. The authorities should clarify clearly whether these formalities are applicable to & required even in cases of 44AD cases opting for tax Audit and those who do not have taxable income or loss. It will be better and will be a great relief to a large no. of persons if the Govt. withdraws the new provisions & changes immediately without delay.
    I request the tax-payers and professionals to press for this demand and raise these matters in different forums to make the Govt. to understand the situation and accede to our request in dropping/deleting the the new provisions & changes at the earliest.
    Thanking You
    Yours faithfully
    ACN Prasad
    A.C.NAGARAJA PRASAD, B.COM., F.C.A.,
    Chennai,8 th September 2013

  3. A.C.NAGARAJA PRASAD, B.COM., F.C.A., says:

    Grievance sent to Ministry of Finance/Revenue on 25.08.2013

    The recent introduction of online e-filing of Tax Audit other reports, 3CD other Forms, annexures etc., and the nature & volume of particulars to be filled in those poses a big problems to tax payers and also professionals from several angles. The procedures & formalities connected with them are also cumbersome, very difficult & impractical for all especially for those in small towns, non-urban and remote areas.
    The fixing of the responsibility on the Tax Auditor in filling the particulars and the requirement regarding the client to choose the auditor & approve his report etc., and sending all of them to CPC online, to put it mildly, is very odd and time consuming. Moreover, the Auditor cannot express his views, comments and exceptions etc., in many areas particularly in Form 3CD and has to give all particulars as per the format and even if a single detail is not filled up the form cannot be uploaded. The shift of responsibility in providing particulars & information from the management of the entity to the auditor is against the basic principles of Auditing.
    Moreover, tax audit is made applicable to persons with less than rupees one crore Turnover if they do not show a net profit of 8% of the T.O – previously it was 5% on Retail trade alone. The percentage is very unrealistic and near impossible except, perhaps, in cases such as service providers. In other words, many persons more particularly middle class Traders are forced to opt for compulsory tax audit. How it is possible for them to keep accounts, records etc., at such a standard, provide the required particulars, information and also comply with all these cumbersome, very difficult and impractical procedures and also formalities connected with them?
    Also think what the Govt. is going to achieve or benefit by these provisions which cause enormous hardship, practical problems & affect a large number persons belonging to lower middle to middle income category. The most optimistic estimate of revenue from the items that may be derived by the Govt. from the above referred provisions, many infructuous statutory obligations like TDS and other levies such as ‘Wealth Tax’ (and that too with an exemption of paltry Rs.30 Lakhs) is surely very very meagre.
    If the Revenue authorities feel that something is wrong in a particular case they are empowered to scrutinise the case and examine all the points in depth. Keeping in view such a few cases, it is not fair to subject all the others to a painful, time-consuming and harsh exercise. Any alterations & changes have to be prevented especially in this year as the ‘Direct Tax Code’ is proposed to be introduced. The compliance with laws & procedures become very difficult and tedious when they are changed often and that too causing much hardship & agony to all especially to large number of medium level tax payers.
    It is earnestly requested that the Ministry of Finance & Revenue along with the concerned Departments should reconsider & drop the measures introduced this year and earlier years. They should take immediate steps to withdraw the new provisions, changes etc., especially regarding the Tax Audit Report, Forms 3 CD etc., & other formalities and also prevent such kind of provisions in future. The Wealth Tax exemption limit should be raised to at least Rupees one Crore with retrospective effect.
    I once again stress that acceding to my requests is not going to cause any material harm/loss to the Govt. and on the other hand it will save the public from a severe hardship and cause a great relief to them.
    Expecting a quick and favourable response,
    Thanking You
    Yours faithfully
    ACN Prasad
    A.C.NAGARAJA PRASAD, B.COM., F.C.A.,
    Chennai
    P.S. On knowing about various practical problems faced by professionals and the Article & comments given above, we should all join the demand for deletion/dropping of changes in toto.

  4. CA Pushpodbhav Jha says:

    It appears that there is lack of officials of the income tax department and the software developer. We are the ultimate suffers killing our valuable time and facing problems.

  5. k.CHANDRASEKARAN says:

    further the form 3cd 2 3cb itself is not capable of getting it saved in the usual formate pdf etc for files other than xml.

  6. k.CHANDRASEKARAN says:

    There is too many duplication of work of filling up entries at multiple forms which is not desirable .This procedure involves more complication and waste of human time both by assesses and professionals and nobody benefits in any way by this procedure.
    There should be a simple procedure to upload the entire records by way of an email attachment to IT office direct by professional than this “xml creation and scanning” and all.
    This is not easy for small assesses and professional who operate form areas where there is no infrastructure
    K.chandrasekaran senior CA

  7. S PRAKASH says:

    sir,
    Is the department is replacing its officers to tax professionals like FREE DATA ENTRY OPERATOR for uploading the information required by the income tax dept.,

  8. sanjay bhate says:

    I am fully agree
    govt must take immidiate actiom

  9. SANJAY JAIN says:

    It is well settled that any software is put to rigorous test before it is put in use. Has this been followed or we are in a great hurry to overlook the established system?

  10. RAJKUMAR SADHWANI says:

    they have no practical knowledge and they dont understand our difficulties onlt thing they know is revenue i think e filing of audit report must b posponed to next year.

  11. k.jegadeesan says:

    INCOMETAX DEPARTMENT HAS NOTIFIED THAT COMPULSORY E FILING OF TAX AUDIT REPORT BY AUDITORS LAEADS TO UNTOLD DIFFICULTIES AND SUFFEREING TO SENIOR AUDITORS WITH LITTLE PRACTICE AND WASTE OF TIME IN FILLING UNWANTED FIGURES IN THE ITR RETURNS. MOREOVER AUDIT WAS NOT PROPERLY CARRIED OUT BUT INSTEAD OF FILLING FIGURES IN THE 3CD FORMS WHICH ULTIMATELY MADE DIFFICULT TO CONVERT IT TO XML FORMATE. THE INCOME TAX DEPARTMENT WITH OUT KNOWING SOFTWARE, SPENDS MOST OF THE TIME IN COMPUTER AND THE SOFTWARE PEOPLE INVOLVES INCOME TAX MATTERS WITHOUT KNOWING IT THOROUGHLY.SO TIME SHOULD BE EXTENDED TILL 31-12-2013 AND OPPORTUNITY SHOULD BE GIVEN TO AUDITORS TO EXPRESS THEIR COMMENDS AND THEN IMPLEMENT IT TO MAKE THE SCHEME SUCCESSFUL.

  12. k.jegadeesan says:

    SIR,
    THE NEW F-FILING OF AUDIT REPORT BY AUDITORS GIVES LOT OF MENTAL AGONY AND PRESSURE ON THE PART OF THE AUDITORS NEITHER TO TAKE UP THE AUDIT WORKS BY COMPLYING VARIOUS REQUIREMENTS AS PER INCOME TAX LAW AND TO EQUIP THE LATEST TREND IN COMPUTER E-FILING ACTIVITIES AND FACE DAY TO DAY PROBLEMS AND THIS LEADS TO WASTAGE OF TIME OF SENIOR AUDITORS WITH LITTLE PRATICE. THE INCOME TAX DEPARTMENT THROW ALL THE LIABILITIES AND RESPONSIBILITIES TO AUDITORS AND DIRECTLY INVOVED WITH SOFTWARE EXPORTS WITHOUT KNOWING ABCD OF COMPUTERS AND SOFTWARE WASTING THEIR OWN TIME FOR NOTHING. SO THE FILING OF AUDIT RETURN SHALL BE ALLOWED BOTH FOR MANULY AND ELECTRONICALLY FOR ANOTHER ONE YEAR.

  13. S PRAKASH says:

    Sir,
    If the true facts are told to dept., they get angery.But it is the fact that e-filing of audit report by auditor,accepting by the client( if rejected what is the remedy?) e-filing of B/S, P & L a/c with or with out schedules,than it has to fit in serton limited MB pdf, what a hell?Is this the simplification of the tax laws and procedures the Assessees are expecting from an WHITE COLOURED Finance Minister and Ex-Financial Expert PM of India?Then What in IT CODE? God only knows.
    Better if the CBDT postpone the date of e-filing till all its software are put to tesing by the Finance Minister and PM and then ask the assesses to file the returns.The tax laws are ever changing and the number of facts like court decisions,ITAT and Appeal orders etc., will infuluence the calculation of the tax liability and the same can not be fixed in the pre-defined software.

  14. Ganesh Rapaka(Articles) says:

    Yes Sir, I fully agree with you. This is harassment to all i.e. Auditors & Assistants. While introducing a new schema mention anywhere, like in updates.It is very time cost to Auditors. But govt have no time to see this problems facing by professionals,really it is a harassment to professionals.

  15. CA J K JAIN says:

    It is a very time consuming, lack of space/provision for commenting on various tax audit points/shortcomings of the assessee, ever changing Utility and so on which is giving a lot of pain to the practicing CAs.

  16. Bimal Gunjarwala says:

    I Agree with you. Department plans to load everything on professionals. This will create a lot off burdens on professionals. So to avoid this burden, there should be slab wise filing should be arranged for. Such as for assessee having turn over from 1 crore to 5 crore should be up to 30th Sept, then 10 crore 1 to 15 crore up to 31st oct and 15 crore 1 onwards should be up to 30th nov. This is just an example but a practical way. This will divide the burden and professional will also give proper attention to each report.

    Lekin woh din kaha jab kauve ke muh me Raam.

    It is very strange that in our country, we are treated as thief and evils understand themselves a GOD.

  17. CA Parmod Bindal says:

    Besides the problems in e filing of returns, the govt has amended the Balance sheet performa and Profit and loss, which asks for the information based on the last year figures e.g. sundry creditors for more than one year old, break up of loans and advances etc.. the requriement are different for Proprietorship concerns, partneership firms and companies. But when you got prepared the Balance sheet on the basis of short term and long term( as per future) why you are asking for backward figures. Moreover, when you have taken the scanned copies of Balance sheet and Profit & Loss what is the requirement of filling up the Balance sheet & Profit & Loss figures again, thus increasing the time consumption of Professional. Who will bear the time cost of professional keeping in view of time limitation of 30th sept.

  18. I think it wud be better if the Govt postpones efiling of tax audit report to next year ie from AY 2014-05 onwards. Till then the concerned software people get ample time to sort out the problems faced.

  19. Jayant D Kalpavriksha says:

    Sir
    The department has changed the utility and even after change ther is no informtion to the auditors. The message giving error will be exhibited while uploading the rerpot. But it is very difficult to locate the error as to what exhactly there is error. The system never revels the error. The xml generatred will not show the line nos. Then how to correct the return. Secondly as there is change in utility and we never know about change and we are wasting time in trying the correct the error by retyping the form and wasring days and hours togehter abd thereby there is a waste of time and at the same time the works gets accumalated. How to compensate the pending work without the fault of auditor or assessee. So government should think seriously and must extend the date by three months and not one month or two months. As per the law assessee must get at least 6 months. Here utility is not final when already 5 months have lost. So assessee and audiror must get minimum 3 months. Take the example of loss returns due as on 31.7.2013 the utilty has been declared in the first week or second week of July, 2013 amd the date has been extened by 4/5 days which is practically of no help. So government should be serious about extention of the date and the members at the helm must also be serious about its members.

  20. SANJAY JAIN says:

    IT IS VERY STRANGE THAT WE ARE STILL LIVING IN THE AGE OF CATCHING THIEVES AND ROBBERS. WHEN CAN WE EXPECT A REGIME THAT WILL TRUST ITS OWN COUNTY MEN WHO HAVE ELECTED AND REPOSED TRUST AND CONFIDENCE INTO THEM. WHAT EVER BE THE SYSTEM, IT SHOULD BE USER FRIENDLY OR ELSE IT IS WASTE OF EVERYBODY’S ENERGY. WE ALL SHOULD APPRECIATE THE CURRENT SCENARIO, RISE TO THE OCCASION AND USE OUR ENERGY IN MEANINGFUL AND PRODUCTIVE CHANNELS.

  21. CA VIRAL RUPANI says:

    Sir u r right in pointing out the fact about frequent alteration in xml utility

    HERE AS U SAID NOBODY IS RESPONSIBLE FOR THIS
    WHICH AUTHORITY DO THIS IS ALSO NT MENTIONED
    LOGIC AND REASONS AND INTIMATION ALSO THEY NEVER STATE WHILE MAKING CHANGES

    ALL FORMS PREPARED FROM DOWANLOADING E-GOVT FORMS WILL HAVE TO BE AGAIN PREAPRED WITH NO FACILITY OF COPY DATA FROM EARLIER DATA IS ALLOWED and HENCE PROFESSIONAL
    DEPENNDS ON PRIVATE PROGRAMMER FOR THIS AND WHAT A PITY THEY HAVE TO SERIOUSLY
    FIND OUT WHERE CHANGES WERE MADE AND THAT IS ONLY WHEN ONLY ONE MONTH LEFT

    FORMS ARE NOT STANDARDISED

    AFTER PASSING BUDGET 2012 IN MAY 2012 GOVT HAS ENOUGH TIME TO FRAME OUT FILING E FORMS AND PREPARING XML THEN ALSO THEY ANNOUNCED IN JUNE 2013

    IT HAPPENS ONLY IN INDIA AND WHO IS SUFFERE ” CLERICAL ACCOUNTANT ” means CA

  22. D.C.SINGHVI says:

    Thanks Halakandi,

    The Government is virtually at collapse and no time to see these type of problemms. Mr Chidabram is busy with the dollar and hardly has time to see the taxpayer’s problems forget the Chartered accountants of that community he is enemy no.one. We are facing similar problems. In fixed assets they require the details of additions and deletions but the schema is not compatible to take these details.Why the Government is so adamant,Mr. FM must reply.

  23. CA (Dr.) S.C.Jain says:

    Very true. I appreciate your article in highlighting practical difficulties.

  24. CA. MANISH FOFARIA says:

    Sir,

    I fully agree with you.

  25. CA HIRANAND says:

    There is no print option in the utility

  26. A.VENKATESAN-CHENNAI says:

    k

  27. MUKESH RATHI says:

    Sudhir ji,

    Very true we are facing the same problems and you write it very well about our feelings towards department and all.

    Thanks

  28. SHIRISH VINCHURKAR says:

    Dear Sir,
    You are quiet right. If Income tax department want to introduce efiling of tax audit report, then then should acted much before that in Dec 2012. Because they have ameneded law on 01/05/2013 and make utility for efiling on 1 st July 2013. It means aleready 3 months are over. Up to this, assessee had 6 months to obtain tax auidt report from end of the financial year. Here assessee gets only 3 months from date of Utility made avilable, So as per my opinion, date of audit for submission of tax audit report u/s 44 AB should be extend at least 2 months as you have demanded. and this extentsion should be declared immediately and not on 30/09/2013. Sir, You are rightly said that Department do not take any effort to publish that utility is changed or not. When we go to upload , then we comes to know that utility is changed. AGain the department should inform to every CA ,that what utility is changed, what computer requirement [ hardware and software ] require for efiling of tax audit report utility. Here , we CA at mofussil area are enquiring each other, and wasting our professional time in enquiring meagre software matters instead of doing TAx Audit . I feel, in computer environment, Uploading of TAx Audit report is become important rather than doing quality audit. Thanking you sir, CA Shirish Vinchurkar, Chalisgaon, Mahrashtra 9823242519

  29. A.VENKATESAN-CHENNAI says:

    IT IS CORRECT EVERY ONE IS FACING THE PROBLEMS . IT IS A HARRASSMENT TO AUDITORS.

  30. V Sivaraman says:

    It is not the case only with 3CD, even 3CEB this is the case.

    CA V.Sivaraman

  31. CA SUDHIR HALAKHANDI says:

    TIPS FOR THE E-FILING OF AUDIT REPORT-
    1. IMMEDIATELY FILE THE SAVE UTILITY BECAUSE AT ANY TIME THEY CAN CHANGE IT AND YOU WILL HAVE TO FILL A NEW UTILITY.
    2. SINCE THE UTILITY IS CONTINUOUSLY CHANGING HENCE PLEASE DON’T DEPEND ON YOUR SOFTWARE PROVIDER BECAUSE HE WILL ALWAYS TAKE TIME TO UPDATE THE SOFTWARE AFTER EVERY CHANGE AND SINCE CHAGES ARE MADE ON DAILLY/WEEKLY BASIS HENCE FILL THE UTILITY DIRECTLY ON IT SITE AND COMPLETE THE TASK INSTEAD OF WAITING FOR UPDATION OF SOFTWARE. CERTAINLY IT WILL SAVE YOUR TIME OF WAITING.

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