CBDT Revises Form 3CD: To mine GST Data to check Tax Evasion [Read Notification]
The Central Board of Direct Taxes ( CBDT ) has revised the Form No. 3CD, an audit report under section 44AB of the Income Tax Act, 1961 in a case where the accounts of the business or profession of a person have been audited under any other law.
Earlier there were reports that the Income Tax Department wants to mine the GST payments data of businesses to ensure that no income goes untaxed.
With the rollout of GST, which is comparatively more transparent than the old the tax regime, the Board wants firms availing presumptive taxation facility and also certain companies (not subjected to tax audit) to furnish GST-related payments information in their income tax returns.
Tax Auditors of a certain classes of Assessees shall file Form 3CD in the prescribed format. A tax audit is mandatory if the turnover of a business exceeds Rs. 1 crore or exceeds Rs. 25 Lacs in case of Professionals.
Presently, the companies that are not subjected to tax audits are required to furnish GST details. With this amendment, this will be extended to tax audit cases.
Form 3CD is a Form in accordance with Rule 6G(2) and Section 44AB of the Indian Income Tax Act, 1961. The Form is a part of the process of filing Income Tax Returns in India and is an Annexure to the Audit Report. Form 3CD contains 32 Clauses. It is required to be attached with Forms 3CA or 3CB, as applicable.
The amendment further inserts a new provision, Rule 29A, to prescribe the details of any amount is to be included as income chargeable under the head ‘income from other sources’ as referred to in section 56(2)(ix) of the Income Tax Rules.