Salary Income Reporting in Tax Audit

This discussion clarifies the reporting requirements for salary income and gifts from relatives during a tax audit. Salary income is part of the overall income computation. Gifts from relatives need to be reported under Section 40A(2)(b) of Form 3CD, concerning related party transactions. Both salary income and capital receipts not credited to the P&L should be reported in the designated section of the tax audit report, which also reflects in your Income Tax Return (ITR).