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Nowadays books of accounts are mostly maintained via software rather than traditional manual accounting system which helps the accountants to prepare and reduce the arithmetical errors in books of accountants and it also helps the auditors to verify the books of accountants at ease.

Among the softwares that are used for the preparation of books of accounts, Tally Software is widely used. So, while doing Tax Audit in Tally Software, the required points can be ascertained by following the following steps:

Ways to ascertain the points required in Form 3CD from Tally ERP 9
  1. Name of the Assessee - Can be ascertained from the Assessee
  2. Address of the Assessee - Can be ascertained by pressing Alt + F3 at Gateway of Tally followed by (Alter) and selecting the required company in which we can find the address of the assessee. After that coming back again to the gateway of tally by pressing escape.
  3. PAN number of the Assessee - PAN number of the assessee can be ascertained by pressing F11 and thereafter. We can find PAN number of the assessee there
  4. Identification number of Indirect Taxes - We can find these by pressing F11 and thereafter. We can find the identification numbers here by pressing yes at Set/alter details (if provided earlier by the assessee)
  5. Status - Status of the assessee can be ascertained from the fourth letter of the PAN number
  6. Previous year - will be the financial year of the assessee
  7. Assessment year - will be financial year subsequent to the previous year of the assessee
  8. The relevant clause under which audit will be conducted - can be found from the profit and loss of the assessee
  9. Name of the partners and profit-sharing ratios of the firm (If applicable) - Name of the partners can be ascertained by opening balance sheet and capital thereafter and profit sharing ratio can be ascertained by opening profit & loss ledger ( by pressing D A L  and profit thereafter from the gateway of tally) in which we can find the profit-sharing journal entry in which we can find the sharing ratio
  10. Nature of business or profession can be found by checking profit and loss of the assessee
  11. Books of accounts maintained - It maintains cash book, bank book, journal, ledger and stock register also if maintained
  12. profit assessable on a presumptive basis can be found by inquiring the assessee
  13. Method of accounting employed by the assessee - Method of accounting employed can be ascertained by checking the balance sheet and profit and loss of the company
  14. Method of valuation of closing stock can be ascertained if the assessee maintains stock register - From the gateway of Tally - pressing I I A   and selecting the required stock in which we can find the stock valuation method
  15. Conversion of capital asset into stock in trade can be found by opening balance sheet and fixed assets thereafter and pressing F12 in which pressing show opening balances and transactions as Yes in which in case of deletion we can find the reason for the same whether it is deletion or conversion
  16. Amount not credited to profit and loss account can be found by verifying the capital account of the assessee
  17. Whether any building is transferred in the previous year can be found by following the same steps in step 15
  18. Depreciation allowable as per Income Tax Act can be found by verifying the opening WDV form the past audit report and additions and deletions can be found by following the step 15
  19. Amount inadmissible under section 35 can be found by verifying the profit and loss account
  20. Date of payment to various funds for employees welfare can be found by checking the salaries head or any other appropriate head in the profit and loss account of the assessee
  21. Amounts debited to profit and loss in nature of personal or capital can be ascertained by verifying the profit and loss mainly Miscellaneous expenses account and repairs and maintenance account
  22. Details of payments on which tax is not deducted can be found by checking the profit and loss and expenditure claimed by the assessee and the permissible limits for the same for deducting TDS under the income tax act
  23. payments made to specified persons as per 40(A)(2)(b) can be ascertained by inquiring the assessee
  24. Amounts deemed to be profits and gains - can be found out by repeating the steps mentioned in point 15
  25. Any sum chargeable to tax under section 41 - This can be ascertained by verifying the profit and loss and fixed assets and bank book of the assessee
  26. Sum referred as per section 43B - can be ascertained by verifying the previous audit report and the profit and loss of the assessee
  27. Amount of CENVAT availed - can be found by checking the duties and taxes group of the assessee in the balance sheet by enabling show opening balances and transactions as yes in F12
  28. Whether the assessee has received any share of specified income - can be found out by inquiring the assessee
  29. can be found out by inquiring the assessee
  30. can be found out by inquiring the assessee
  31. Receipt of payment as per section 269SS and section 269T can be ascertained by opening balance sheet and opening Loans(Liability) and clicking on F12 and pressing show opening balances and show transactions as yes in which we can find any amount received or paid. Cash amount received as per section 269ST can be found by pressing D A C from the gateway of tally and opening monthly vouchers and there selecting the entire period and thereafter pressing Alt + F12 and setting the range as Voucher having ledger amount greater than 200000
  32. Brought forward losses details can be found out by checking the previous audit report and ITR form of the assessee
  33. Deductions allowable as per Chapter VIA can be found out by verifying the capital account by checking the capital account in the balance sheet and thereafter opening the vouchers and selecting the entire period and pressing F12 and selecting yes for show narrations. In narrations, we might find the amount paid for donations and LIC and other eligible donations
  34. Details of TDS deduction and collections by the assessee can be ascertained by checking the TDS ledger by pressing D A L (pressing these keys from the gateway of tally)  TDS ledger of the assessee
  35. Quantitative details of the assessee can be found out by opening the stock summary in the gateway of tally and pressing F12  and pressing show opening balance and goods inwards and goods outwards as yes
  36. Tax on the distribution of profits can be found by verifying the amount paid as dividend
  37. Details of cost audit can be ascertained by verifying the cost audit report of the assessee if applicable
  38. can be ascertained by taking such report from the assessee
  39. can be ascertained by taking such report from the assessee
  40. Accounting ratios can be ascertained by opening the profit and loss account of the assessee
 
 

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Category Income Tax, Other Articles by - kushwanth avsr 



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