Section 44AB of the Income-tax Act, 1961 (‘the Act’) read with rule 6G of the Income-tax Rules, 1962 (‘the Rules’) requires specified persons to furnish the Tax Audit Report along with the prescribed particulars in Form No. 3CD.
The existing Form No. 3CD was amended vide notification no. GSR 666(E) dated 20th July 2018 with effect from 20th August 2018. However, the reporting under clause 30C and clause 44 of the Tax Audit Report was kept in abeyance till 31 st March 2019 vide Circular No. 6/2018 dated 17.08.2018, which was subsequently extended to 31 .03.2020 vide Circular No. 9/2019.
After receiving several representations with regards to difficulty in implementation of reporting requirements under clause 30C and clause 44 of Form No. 3CD of the Income-tax Rules, 1962 in view of the Global Pandemic due to COVID-19 virus and requested for deferring the applicability of the above provisions. The matter has been examined and in view of the prevailing situation due to COVID-19 pandemic across the country, it has been decided by the Board that the reporting under clause 30C and clause 44 of the Tax Audit Report shall be kept in abeyance till 31st March 2021.
Clause 30 C of the Tax audit
|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,2021 by this notification)||NA|
|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:|
Clause 44 of the Tax audit
|44||Break-up of the total expenditure of entities registered or not registered under the GST (This Clause is kept in abeyance till 31st March,2021 by this notification)||NA|
|Total Amount of expenditure incurred during the year||Expenditure in respect of entities registered under the GST||
Expenditure relating to entities not registered under GST
|Relating to the goods or services exempt from GST||Relating to the entities falling under composition scheme||Relating to the other registered entities||Total Payment to Registered entities|