Clause 12 of Form 3CD requires the tax auditor to report \u201cWhether the profit and loss account includes any profits and gains assessable on a presumptive basis, if yes, indicate the amount and the relevant sections (44AD, 44AE, 44AF, 44B, 44BB, 44BBA, 44BBB, Chapter XII-G, First Schedule or any other relevant section)”.<\/td> Amended Clause 12 requires the tax auditor to report \u201cWhether the profit and loss account includes any profits and gains assessable on a presumptive basis, if yes, indicate the amount and the relevant sections (44AD, 44ADA, 44AE, 44AF, 44B, 44BB, 44BBA, 44BBB, Chapter XII-G, First Schedule or any other relevant section)\u201d.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<\/span>Clause 18: Reporting on admissible amount of depreciation under Section 32<\/span><\/h3>\n\n\n\nBefore<\/strong><\/td>After<\/strong><\/td><\/tr>The pre-amended sub-clause (ca) of Clause 18 requires reporting the following: \u201cAdjustment made to the written down value under Section 115BAC\/115BAD (for the assessment year 2021-22 only).\u201d<\/td> The substituted Clause 18(ca) requires the tax auditor to report as follows:<\/span>Clause 19: Amounts admissible under Sections 32AC, 32AD, etc<\/span><\/h3>\n\n\n\nBefore<\/strong><\/td>After<\/strong><\/td><\/tr>The pre-amended Clause 19 requires tax auditor to report amounts admissible under Sections 32AC, 32AD, 33AB, 33ABA, 35(1)(i), 35(1)(ii), 35(1)(iia), 35(1)(iii), 35(1)(iv), 35(2AA), 35(2AB), 35ABB, 35AC, 35AD, 35CCA, 35CCB, 35CCC, 35CCD, 35D, 35DD, 35DDA and 35E. The amount admissible has to be reported section-wise in Tabular form. The pre-amended Clause 19 in Notified Form 3CD contains no reference to Section 35ABA, while the e-filing utility contains a reference to Section 35ABA.<\/td> Clause 19 has been amended to include a reference to the following two entries:<\/span>Clause 21(a): Items of expenditure debited to P&L account of the nature covered by 6th ,7th and 8th items in the Tabular format<\/span><\/h3>\n\n\n\n<\/span>Before<\/span><\/h4>\n\n\n\nItems 6, 7 and 8 of Tabular format in Pre-amended Clause 21(a) require the tax auditor to report amounts debited to the P&L account in respect of:<\/p>\n\n\n\n
\nExpenditure by way of penalty or fine for violation of any law for the time being force (6th item)<\/li>\n\n\n\n Expenditure by way of any other penalty or fine not covered above(7th item)<\/li>\n\n\n\n Expenditure incurred for any purpose which is an offence or which is prohibited by law (8th item)<\/li>\n<\/ul>\n\n\n\n<\/span>After<\/span><\/h4>\n\n\n\nThe amended Clause 21(a) increases the number of items from 8 to 9 as follows:<\/p>\n\n\n\n
\nEntry 6, \u201cExpenditure by way of penalty or fine for violation of any law for the time being force\u201d, has been substituted with \u201cExpenditure for any purpose which is an offence or is prohibited by law or expenditure by way of penalty or fine for violation of any law (enacted in India or outside India)\u201d;<\/li>\n<\/ul>\n\n\n\n\nA new entry 8, \u201cExpenditure incurred to compound an offence under any law for the time being in force, in India or outside India\u201d, has been inserted;<\/li>\n<\/ul>\n\n\n\n\nEntry 9, \u201cExpenditure incurred for any purpose which is an offence or which is prohibited by law\u201d, has been substituted with \u201cExpenditure incurred to provide any benefit or perquisite, in whatever form, to a person, whether or not carrying on a business or exercising a profession, and acceptance of such benefit or perquisite by such person is in violation of any law or rule or regulation or guideline, as the case may be, for the time being in force, governing the conduct of such person\u201d.<\/li>\n<\/ul>\n\n\n\n<\/span>Correction of clerical error in Clause 21(b)((ii)(b)(IV)<\/span><\/h3>\n\n\n\nPre-amended Clause 21(b)(ii)(b)(IV) of Form 3CD required reporting of amounts inadmissible under section 40(a):<\/p>\n\n\n\n
(ii) as payment referred to in sub-clause (ia)<\/p>\n\n\n\n
(A) **********<\/p>\n\n\n\n
(B) Details of payment on which tax has been deducted but has not been paid on or before the due date specified in sub-section (1) of section 139.<\/p>\n\n\n\n
\ndate of payment<\/li>\n\n\n\n amount of payment<\/li>\n\n\n\n nature of payment<\/li>\n\n\n\n name and address of the payer<\/li>\n\n\n\n amount of tax deducted<\/li>\n\n\n\n amount out of (V) deposited, if any<\/li>\n<\/ul>\n\n\n\nTo correct the clerical error in (IV) above, for the word \u201cpayer\u201d, the word \u201cpayee\u201d shall be substituted. Practically, this will have no impact on the reporting obligations of the tax auditor.<\/p>\n\n\n\n
<\/span>Clause 26: Reference of clause (h) in Section 43B dealing with delayed payments to MSEs<\/span><\/h3>\n\n\n\nIn Clause 26, for the brackets, letters and word \u201c(f) or (g)\u201d, the brackets, letters and word \u201c(f), (g) or (h)\u201d have been substituted. The amended Clause 26 now reads as follows:<\/p>\n\n\n\n
In respect of any sum referred to in clause (a), (b), (c), (d), (e), (f), (g) or (h) of section 43B, the liability for which:<\/p>\n\n\n\n
(A) pre-existed on the first day of the previous year but was not allowed in the assessment of any preceding previous year and was<\/p>\n\n\n\n
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