Tax Audit Checklist on Clause 21(a) of Form 3CD under the Income Tax Act, 1961
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 16 September, 2024
Latest from Taxmann
Tax audit plays a vital role in ensuring compliance with the provisions of the Income Tax Act, 1961, and reporting obligations. One of the essential components of the tax audit report is Form 3CD, which consists of various clauses to guide the auditor in their reporting duties. Among these, Clauses 21(a) of Form 3CD under the Income Tax Act, 1961 outlines the reporting of specific expenses Under Sections 37(1), 40(a), 40(b)/40(ba), 40A(3), 40A(7), 40A(9), 14A, and 36(1)(iii) debited to the Profit & Loss (P&L) account that may not be allowable for tax purposes under the Income Tax Act.
The auditor’s role is limited to reporting these expenses, without forming an opinion on their allowability. Auditors should obtain detailed information from the auditee to ensure accurate reporting.
Clause 21(a) highlights key disallowed expenses for tax purposes, including capital and personal expenditures, advertisement costs in political party publications, club entrance fees, subscriptions, and services. It also covers expenses related to offenses or prohibited purposes, other penalties or fines, costs to compound an offense, and expenditures for providing benefits or perquisites
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
