Changes In Form 3CA, 3CB & 3CD

Changes In Form 3CA, 3CB & 3CD


CBDT via Notification No. 33 dated 25th July 2014, had made some changes in Form 3CA, 3CB and 3CD. Via these changes the compliances which a CA is required to ensure and disclosures which are required to be made by a Chartered Accountants has been increased. An effort has been made to compile and put in place all additions for the benefit of readers. Listed below are the modifications/ additions made in this notification.


  1. Now we have to mention the period for which profit & loss account/ Income and expenditure account has been prepared. This assumes are important if accounts are prepared for more than or less than 12 months.
  2. In the opinion part, now apart from mentioning that particulars in Form 3CD give a true and correct view we also have to mention our observations/ qualifications if any.


Changes made are similar to that in Form 3CA as mentioned above.


The first thing which comes to notice in Form 3CD is that it now has 41 clauses as against 32 clauses prior to this notification. The key changes made in Form 3CD are addition of some new clauses thereby requiring more disclosures and doing away with certification by client/ auditee. Listed below are the key modifications/ additions made in Form 3CD.


  1. Now we have to mention whether the assessee is liable to pay Indirect tax like excise duty, service tax, sales tax, custom duty etc and furnish the registration number for the same.
  2. Mention the clause under which the audit has been conducted.


  1. Earlier we were only required to mention a list of books of account maintained; now we also have to mention the address at which the books of accounts are kept. Further if books of accounts are not kept at one location, we need to furnish the addresses of locations along with the details of books maintained at each location.
  2. Apart from mentioning the list of books examined we also have to mention the nature of relevant documents examined.
  3. For reporting the effect in profit and loss due to change in method of accounting or method of valuation a format has been prescribed.
  4. A new clause has been added whereby details of property along with consideration received or accrued and value adopted or assessed is to be furnished/ disclosed, where any land or building or both is transferred during the P.Y for a consideration less than the value adopted or assessed or assessable by any authority referred to in Sec 43CA or Sec 50C.
  5. Additional disclosures required under clause 19 erstwhile clause 15 for sec 32AC, 35(2AA), 35(2AB), 35AD,35CCC and 35CCD
  6. Disclosures to be made on whether during the previous year the assessee has received any property, being share of a company not being a company in which public are substantially interested, without consideration or for inadequate consideration as referred to in Sec 56(2) (viia).
  7. Disclosures to be made on whether during the previous year the assessee received any consideration for issue of shares which exceeds the fair market value of the shares as referred to in sec 56(2) (viib).
  8. Disclosures on whether the assessee has incurred any speculation loss referred to in Sec73 during the previous year.
  9. Disclosure on whether the assessee has incurred any loss referred to in sec 73A in respect of any specified business during the previous year.
  10. To be report whether the company is deemed to be carrying on a speculation business as referred in explanation to Sec 73.
  11. Apart from reporting on the Tax deducted & remittance as per provision of chapter XVII-B or XVII-BB, we also have to report TDS & TCS returns are submitted on time or not and whether the assessee is liable to pay interest under sec 201(1A) or sec 206C(7).
  12. While reporting on tax on distributed profits under sec 115-0 disclosure to be made for amount of reduction as referred to in Sec 115-O (1A) (i) & (ii).
  13. Disclosures on cost Audit to include disqualification or disagreement on any matter/ item/ value/ quantity as may be reported/ identified by the Cost Auditor. Earlier the requirement was to only state whether Cost Audit was carried out or not & to enclose copy of report.
  14. Similar disclosure to be made with respect to audit under Central excise Act as mentioned above.
  15. To be reported whether any audit was conducted under Sec 72A of the finance Act, 1994 in relation to valuation of taxable services, further disclosures to be made for any disqualification or disagreement on any matter/ item/ value/ quantity as may be reported/ identified by the auditor.
  16. Details of demand raised or refund issued during the previous year under any tax laws other than IT Act 1961 & Wealth Tax Act 1957 along with details of relevant proceeding.

The above mentioned modifications increases the responsibilities of the Chartered Accountants while performing the Tax Audit, as the Auditor has to ensure more compliances than earlier. The disclosure requirements were also increased substantially, and the auditor can no longer just rely on the certification received from the client, as the amendment requires specific disclosures to made in respect of items for which earlier auditor were just required to obtain a certificate.


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