The CBDT has vide Notification No. 33/2014 dated 25th July 2014 published the Income-tax (7th Amendment) Rules, 2014 wherein new Tax Audit Report Forms 3CA, 3CB and 3CD have been prescribed with immediate effect (that is date of publication in Official Gazette of India.)
The new Form 3CD is far more expansive and seeks a lot of details.
My suggestion is instead of a combination of Audit Report Forms 3CA, 3CB, 3CD, 29B, 29C and 10B – five different audit report formats for different categories of assessee’s be prescribed which will contain relevant particulars pertaining to those assessee’s and reduce the clutter of not-applicable clause as well as be easy to comprehend by the Income Tax Department. This is akin to the different forms prescribed for Income Tax Returns for different categories of assessee’s. (updated for ITRs for AY 2017-18).
For Example :-
|AR No.||Corresponding ITR||Present Audit Report Forms||Applicable to which class of Assessee’s|
|AR 3||ITR 3||Form 3CB – 3CD
|Individuals / HUFs whose turnover exceeds the ceiling amounts prescribed u/s 44AB|
|AR 4||ITR 4 (SUGAM)||Form 3CB – 3CD
|Individuals / HUFs whose turnover does not exceeds the ceiling amount prescribed u/s 44AB but liable to audit by virtue of Section 44AD|
|AR 5||ITR 5||Form 3CB – 3CD
|Partnership Firms (including LLPs) | Association of Persons or Body of Individuals|
|AR 6||ITR 6||Form 3CA – 3CD
|Companies other than claiming exemption u/s 11|
|AR 7||ITR 7||Form 3CB – 3CD
|Trusts, etc filing return u/s 139(4A), 139(4C), 139(4D)|