Checklist for Clause 9 and 10 of Form 3CD in Tax Audit under the Income Tax Act, 1961

Clause 9(a) of Form 3CD requires details regarding partners/members of firms/LLPs/AOPs/BOIs and their PSR. Clause 9(b) requires reporting of changes during the year in partners/members and their PSRs. Clause 10(a) requires the tax auditor to state the nature of the assessee’s business or profession. The nature of business in the profession, as reported in clause 10(a), is vital in claiming deductions by the auditee and affects reporting in other clauses of Form No.3CD. Therefore, ensuring correct reporting in Clause 10(a) is crucial.

If more than one business or profession is carried on by the assessee during the previous year, the tax auditor shall state in Clause 10(a) the nature of every business or profession. Clause 10(b) requires that if there is any change in the nature of business or profession, the tax auditor shall report the particulars of such change.

This story provides a detailed audit checklist to help tax auditors report effectively under Clauses 9 and 10.

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