CA Sudhir Halakhandi

CA Sudhir HalakhandiThe utility for uploading Audit report under section 44AB in Form 3CB/3CD is changed on the department’s site within a period of less than one month from its first introduction. In this article we are not very critical about this re-introduction of the utility because the utility given by them this time is much better than the earlier one and it includes some important suggestions given by the professional fraternity after using the previous utility.

First of all the appearance of the latest utility is very good as compared to its earlier counterpart and further many more useful drop down facilities have been provided, which has increased the user friendly status of the utility and also filling of form have become more easier and less time consuming. Despite of all these admirable features of the new utility we have noticed certain mistakes while working with this new utility and these mistakes require immediate attention of the concerned persons/authorities so that the Chartered Accountants throughout the country can perform their duty to upload the audit report efficiently and within time.

There is a clause No. 9 (a) of the Form 3CD and in this clause is about the Books of accounts prescribed for the assessee under section 44AA and after that clause 9(b) is about Books of accounts maintained by the assessee and clause 9(c) is about Books of accounts examined by the CA. There are two options in clause 9(a) – Yes or No in a drop down Box. If you select ‘NO’ then you will not be able to fill any details in clause 9(b) and clause 9(c), which is not correct position.

See here as per section 44AA of the Income Tax Act, 1961 the CBDT has the right to prescribe the Books of accounts for certain profession and as per rue 6F read with section 44AA the Books of accounts has been prescribed for legal, medical, engineering professions architectural, accountancy, technical consultancy, interior decoration, authorized representatives, film artists, company secretary and information technology professionals and for “other professions (other than mentioned above) and for whole of the Business sector”, no Books of accounts have been prescribed by the CBDT.  Now if you select “No” (in case of other professions for which no Books of accounts have been prescribed by the Board and for whole the Business sector) in clause No.9 (a) then the “Add row” Button of 9b and 9c will become inactive and you will not be able to fill 9b- Books of accounts maintained and 9c – Books of accounts Examined.

We have captured the screen shots of both the situation and the same are being presented on the Next page and the same will clear the picture before the readers. Since all the three questions as contained in clause No. 9(a), 9(b) and 9(c) are independent to each other hence even though the answer of clause No.9 (a) is negative (No Books of Accounts have been prescribed) , the answers of clause No.9(b) and 9(c) are to be given in the form of Books of accounts maintained by the assessee and Books of accounts examined by the CA . So a rectification in the utility is urgently required.

 3Cd 1 3CD 2Further one more mistake we have noted in clause No.25 b which is being produced herewith:- 3CD 3

Here see that the Form 3CD is not separately prescribed for each type of assessee i.e. all the assessees whether Individual/HUF/Firm/Company etc. have to use the same Form and clause No. 25(b) is applicable to company assessees only hence in drop down Box there should be an option for other assesses to fill “Not Applicable” (N.A.) . See here in the Form 3CD  utility which was introduced earlier there was N.A. option under this clause which is missing this time.  Though it may not make a big difference but since the Form is a statutory form hence the correction in the utility should be done.




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Tags : form 3cd (86) Sudhir Halakhandi (62) Tax Audit (260)

0 responses to “2 Mistakes in Form 3CD New Utility”

  1. Shasank says:


    Thanks for your inputs, I too was facing the same.
    Just a quick question :- I have come across some opinions that, the Assessee can file with ITR and subsequently the Form 3CB-3CD can be filed by the Auditor and accepted by the Assessee. Can this be done. If yes is it violating the process.

    Thanks in Advance

    Shasank M

  2. CA Atul Kumar Goel says:

    Yes I also agree there is big problem in giving the details of payments to specified persons. It does not ask for nature of payment but requires the date while we are supposed to give the nature of payments. If we start giving the date of payment it may be very long list and if we give closing date it may give the impression that payment to relative has been given on last date to supress the profit.

  3. AJAY says:

    The utility is absolute rubbish. It is not at all user friendly.

  4. MUDIT AGRAWAL says:

    The above two mistakes are quite clearly mentioned by you. There is one more mistake i.e. in point no. 18 (payment to specified persons) utility has asked for date of payment instead of nature of payment. Look that it is almost impossible and irrelevant to give payment date because in many cases there are a lot of entries like purchase from relatives, salary, rent.

    So, there is need to delete the column of payment date and insert the column of nature of payment

  5. KIRIT PATEL says:

    Mistakes in 3CD noted above is correct. We have uploaded 3CB_3CD using new 3CB_3CD form Generation Utility. We have noticed one more mistake in the said utility. Column 16(b) where is details of various contrubtion received and paid is required to given. There is a mistake in Utility. On Generating Report Due date is printed in column of Actual Date of payment and vice-a-versa.

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