After hectic Tax Audit times, for AY 2022-23, now it’s time for some Tax Audit Fun Moments. So, in this article, I am presenting some hilarious Tax Audit QAs/visualisations conceived and visualised by me, which will help You in understanding all important reporting clauses in the Form 3CD Annexure in the Tax Audit Report (TAR), in a funny yet purposeful and useful manner.
1. Clause 44 of TAR
Tax Auditor to an 'Expense' head: Why are you so upset & angry?
Expense head: I am upset as earlier we all were united under one head. Now you are trying to break us & divide into GST registered/unregistered/composite dealer/ exempt heads, knowing fully that my breakup will not determine my allowability in ITR.
Clause 44 of TAR requires Reporting in the below format
|
S.No. |
Total amount of Expenditure incurred during the year |
Expenditure in respect of entities registered under GST |
Expenditure relating to Entities not registered under GST |
|||
|
Relating to goods or services exempt from GST |
Relating to entities falling under Composition Scheme |
Relating to Other Registered Entities |
Total Payment to Registered Entities |
|||
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
2. Clause 8 of TAR
Que: Why did detective Byomkesh Bakshi get a notice from Income Tax Department?
Ans. Because he has not got his books of accounts tax audited for his consultancy receipts. [Section 271B of Income Tax Act & Clause 8 of TAR].
3. Clause 8a of TAR
Que: Why did Iron Man get a 'New-Pinch' from his Tax Auditor?
Ans: Because he has opted for the New Tax Regime [Clause 8a of TAR].
Clause 8 & 8a of TAR requires reporting in below manner
|
08 |
Indicate the relevant clause of section 44AB under which the audit has been conducted |
Relevant clause of section 44AB under which the audit has been conducted |
|
08a |
Whether the assessee has opted for taxation under section |
No |
4. Clause 21(b) & 34 of TAR
Que: Why did "Daya-bhav" Foundation, get a qualification in its Tax Audit Report?
Ans: Because guided by its 'daya-bhav' philosophy, it didn't deduct TDS on salary of its employees & other payments. [Clause 21(b) & 34 of TAR].
Clause 21(b) of TAR requires reporting in below manner
Clause 34 of TAR requires reporting in below manner
5. Clause 29B of TAR
Que: Why did 'Balveer' get worried about his Tax Audit Report?
Ans: He has received a Gift from 'Santa', which his Tax Auditor has reported in Clause 29B in his TAR. [Section 56(2)(x)].
Clause 29B requires reporting in below manner
|
29 |
B |
Whether any amount is to be included as income chargeable |
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|
Nature of Income |
Amount |
Remarks if any: |
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6. Clause 30C of TAR
Que: Why did Shah Rukh Khan get furious with his Tax Auditor?
Ans. (strictly fictional) He has received some CCDs from Byju's Singapore-based Holding Company, as a free token of love n affection for his "YaadGAAR" contribution in Kids learning and education. [Clause 30C on GAAR].
Clause 30C of TAR requires reporting in below manner:
|
30 |
C |
Whether the assessee has entered into an impermissible avoidance arrangement, as referred to in section 96 during the previous year (This Clause is kept in abeyance till 31st March,2022) |
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|
Nature of the impermissible avoidance arrangement |
Amount (in Rs) of tax benefit in the previous year arising, in aggregate, to all parties to the arrangement |
Remarks if any: |
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And the final one....
God to Tax Auditor: Dear hardworking Soul, I am happy with your devotion. Ask anything & I will grant you the same.
Tax Auditor: Dear God, please give me the special power that my digital signature & attachments to my TAR get uploaded glitchfree.
God (puzzled): Vatsa, that is not in my hands, please consult Infosys...
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