Tax Audit Form 3CA

Tax Audit Form 3CA

An income tax audit form is 3CA. According to income tax regulations, taxpayers are required to submit their audit reports by completing either Form 3CA or Form 3CB, one of the two audits.

The auditor who physically assessed or audited the tax assessee in question’s accounts is the best individual to complete Form 3CA.


Who must submit Form 3CA

Income taxpayers, including corporate professionals and self-employed individuals, who fall under the purview of Section 44AB must complete Form 3CA of an income tax audit. In accordance with the most recent income tax regulations, these private persons and corporations must have their bank accounts audited.

Additionally, following the current Companies Act of 2013, businesses who must have their accounts audited must also complete the audit form.

Professional auditors typically complete Form 3CA on behalf of taxpayers. However, it is advised that auditors have the taxpayers review and accept the audit findings before submitting them to the tax authorities.

Following an audit of the taxpayers’ financial records, only a qualified auditor or CA is required to file the Form 3CA.


Form 3CA Submission Deadline

Eligible taxpayers must submit Form 3CA for audit reporting on or before September 30 of the relevant assessment.

The audit report and Form 3CA must be filed by September 30, 2020, for the financial year (FY) 2017–18, for which the assessment year (AY) is 2019–20.

Form 3CE for the audit report must be submitted by November 30 of that assessment year.


Register form 3CA

  1. You must first download the form 3CA from the website of the Income Tax Department in order to fill it out.
  1. After downloading the Form 3CA, print it out and begin filling it out as instructed.


Documents Required

The following are the main information fields in the 3CA audit form:
  1. Information about the taxpayer, such as name, PAN, and address
  1. Identification of the auditor
  1. The number of the Companies Act section or subsection under which the accounts have been audited
  1. Date of the audit and/or audit report
  1. The time frame (beginning and ending dates) when the Income/Expenditure Account or Profit/Loss Account was audited
  1. Date of the Balance Sheet
  1. An affirmation that Form 3CD and the audit report have been attached.
  1. The observations qualifications as discovered in the audit connected to Form 3CD, in detail
  1. Date and location where the audit report was signed
  1. Information on the auditor, including name, address, and membership number.
  1. The seal and signature of the auditor
  1. The auditor is required to submit the Form 3CA together with copies of any pertinent paperwork, such as the Form 3CD, the balance sheet, and the P&L .

Form 3CD

Form 3CD is the name of the audit report format used in India. This audit report may only be submitted by specific types of assessees’ tax auditors. The Indian Income Tax Department has given detailed guidelines for using this form. In compliance with Rule 6G and Section 44AB of the Income Tax Act of 1961, Form 3CD has been developed. As an annexure to the Audit Report, Form 3CD is used. It comprises 32 sections and is a requirement for submitting income tax returns in India. Management of the aforementioned company is required to complete Form 3CD. Before sending the form to the tax auditing body, the tax auditor examines it.

The Tax Auditing Authority then confirms and verifies the information provided on Form 3CD.


Penalty for failing to submit Form 3CD

If an assesse who is required by Section 44AB to have their books of accounts audited fails to do so, the Assessing Officer or A.O., may levy a fine under Section 271B. The less severe of the following will be the penalty:

  1. 5% of the business’s total sales or turnover, or 0.5% of the profession’s gross receipts
  1. INR 1,50,000
  1. However, the A.O. may not impose the penalty if the assessee can show a legitimate reason for failing to arrange for a tax audit.
Difference between 3ca and 3cd

Specific taxpayers or their auditors are required to complete Form 3CA, which is a mandatory audit form.

Form 3CD, which includes the thorough records and statement of accounts audited, is provided as an annex to Form 3CA.