For Tax Audit under section 44AB of the Income-tax Act, 1961 — Form 3CB / 3CD
To,
M/s ______________________________, Chartered Accountants
____________________________________________ (Address)
Name of Assessee: ____________________________________________ PAN: ____________________
Status: ______________________ Previous Year: 01.04.20___ to 31.03.20___ Assessment Year: 20___-___
Dear Sir/Madam,
In connection with your audit of our accounts under section 44AB of the Income-tax Act, 1961 and verification of the particulars in Form 3CD for the above period, we, to the best of our knowledge and belief and after making due enquiries, hereby declare and represent as follows. We understand that where our answer is “No” or “N.A.”, or where records are not maintained / not provided, you will incorporate appropriate observations and qualifications in Form 3CB / Form 3CD, and we shall have no objection thereto.
| Q. No. | Particulars — please tick the applicable box | Yes | No | N.A. | For office use (Obs. Ref.) |
| A. BOOKS OF ACCOUNT & GENERAL RECORDS | |||||
| 1 | We have maintained complete books of account (cash book, bank book, journal, ledger, sales register, purchase register) for the entire year and have produced them for audit. | ☐ | ☐ | ☐ | Cl. 11 / Bank #1 |
| 2 | All vouchers, bills and supporting documents for expenses and purchases have been produced for verification. | ☐ | ☐ | ☐ | 3(a) — Vouchers |
| 3 | This is NOT the first year of audit by your firm; audited accounts of the preceding year exist and have been provided. | ☐ | ☐ | ☐ | 3(a) — Opening Bal. |
| 4 | Records to identify the personal element, if any, in expenses (vehicle, telephone, travelling etc.) have been maintained. | ☐ | ☐ | ☐ | Cl. 21(a) |
| 5 | A fixed assets register has been maintained and purchase invoices of all additions to fixed assets have been provided. | ☐ | ☐ | ☐ | Cl. 18 |
| 6 | We have exercised / not exercised the option under section 115BAC/115BAD/115BAE and the relevant form acknowledgement has been provided. | ☐ | ☐ | ☐ | Cl. 8A |
| B. CASH & BANK | |||||
| 7 | Physical cash was verified by us on 31st March and the cash balance certificate is enclosed; the balance agrees with the cash book. | ☐ | ☐ | ☐ | 3(a) — Cash Cert. |
| 8 | Statements of ALL bank accounts (including loan, OD/CC and closed accounts) for the full year have been provided. | ☐ | ☐ | ☐ | 3(a) — Bank Stmt. |
| 9 | All bank balances as per books are reconciled with bank statements; bank reconciliation statements (BRS) have been provided. | ☐ | ☐ | ☐ | 3(a) — Bank Recon. |
| 10 | Closing balance confirmations / interest certificates of all banks and loans have been provided. | ☐ | ☐ | ☐ | Review #10 |
| 11 | No expenditure exceeding Rs. 10,000 (Rs. 35,000 for transporters) was paid in cash to a single person in a single day, except as separately disclosed to you in writing. | ☐ | ☐ | ☐ | Cl. 21(d) — 40A(3) |
| 12 | No amount of Rs. 2,00,000 or more was received in cash from a person in a day / single transaction / single event or occasion (section 269ST). | ☐ | ☐ | ☐ | Cl. 31 — 269ST |
| C. STOCK / INVENTORY | |||||
| 13 | Day-to-day quantitative stock records (stock register) have been maintained and produced. | ☐ | ☐ | ☐ | Cl. 14 / 35 |
| 14 | Physical verification of closing stock was carried out and the certified, valued stock statement as on 31st March is enclosed. | ☐ | ☐ | ☐ | 3(a) — Stock |
| 15 | Closing stock has been valued at cost or net realisable value, whichever is lower, inclusive of taxes as per section 145A, consistently with earlier years. | ☐ | ☐ | ☐ | Cl. 14 / ICDS-II |
| D. DEBTORS, CREDITORS, LOANS & ADVANCES | |||||
| 16 | Balance confirmations of sundry debtors, sundry creditors, and loans & advances have been obtained and provided. | ☐ | ☐ | ☐ | 3(a) — Confirmations |
| 17 | Loan agreements / sanction letters / statements for all secured and unsecured loans have been provided. | ☐ | ☐ | ☐ | 3(a) — Loan Docs |
| 18 | No loan, deposit or specified sum of Rs. 20,000 or more was taken/accepted or repaid otherwise than by account payee cheque/draft or electronic mode (sections 269SS / 269T). | ☐ | ☐ | ☐ | Cl. 31 |
| 19 | No amount has been borrowed or repaid on hundi otherwise than through account payee cheque (section 69D). | ☐ | ☐ | ☐ | Cl. 30 |
| 20 | Debtors/creditors ageing has been provided; there is no remission or cessation of any trading liability and no write-back of creditors during the year, except as disclosed. | ☐ | ☐ | ☐ | Cl. 25 — Sec 41 |
| E. GST | |||||
| 21 | GST portal login credentials / complete GST records (GSTR-1, 3B, 2A/2B, 9, electronic ledgers, challans) have been provided. | ☐ | ☐ | ☐ | 3(a) — GST Login |
| 22 | Turnover as per GSTR-1/3B reconciles with the turnover as per books; reconciliation provided for any difference. | ☐ | ☐ | ☐ | 3(a) — GST Sales |
| 23 | Purchases and ITC as per GSTR-2A/2B reconcile with books; reconciliation provided for any difference. | ☐ | ☐ | ☐ | 3(a) — GST ITC |
| 24 | There is no outstanding GST demand, no DRC-03 payment and no departmental proceeding during the year, except as disclosed in writing. | ☐ | ☐ | ☐ | Cl. 41 |
| 25 | All RCM (reverse charge) liabilities have been identified, discharged and recorded in the books. | ☐ | ☐ | ☐ | Review #8 |
| 26 | Expenditure break-up as required under Clause 44 (GST-registered / unregistered / composition / exempt entities) has been maintained and is provided. | ☐ | ☐ | ☐ | Cl. 44 |
| F. TDS, TCS & INCOME-TAX | |||||
| 27 | Tax has been deducted/collected at source on ALL payments liable to TDS/TCS and deposited within the due dates. | ☐ | ☐ | ☐ | Cl. 21(b) / 34 |
| 28 | Copies of all TDS/TCS returns (24Q/26Q/27EQ), challans and TRACES justification reports have been provided. | ☐ | ☐ | ☐ | Cl. 34 — TDS Returns |
| 29 | Income and TDS credits as per Form 26AS / AIS / TIS reconcile with the books; reconciliation provided for differences. | ☐ | ☐ | ☐ | 3(a) — 26AS/AIS |
| 30 | Advance tax challans and details of interest on income-tax refund, if any, have been provided. | ☐ | ☐ | ☐ | Review #14-15 |
| 31 | There is no outstanding income-tax demand or pending e-proceeding, except as disclosed in writing. | ☐ | ☐ | ☐ | Review #16 |
| G. STATUTORY DUES & EMPLOYEE FUNDS | |||||
| 32 | Employees’ contributions to PF/ESI have been deposited within the due dates under the respective Acts; all challans and ECR copies provided. | ☐ | ☐ | ☐ | Cl. 20(b) |
| 33 | All statutory dues covered by section 43B (GST, PF, ESI, interest to banks etc.) outstanding on 31st March have been / will be paid before the due date of filing the return, and payment challans will be provided. | ☐ | ☐ | ☐ | Cl. 26 — 43B |
| H. MSME — SECTION 43B(h) | |||||
| 34 | We have obtained and maintained Udyam registration details / MSME status of all suppliers. | ☐ | ☐ | ☐ | Cl. 22 |
| 35 | A list of amounts payable to micro and small enterprises with invoice dates, agreed credit periods and payment dates has been provided. | ☐ | ☐ | ☐ | Cl. 22 |
| 36 | All dues to micro and small enterprises have been paid within the time allowed under section 15 of the MSMED Act, 2006; no interest under section 23 of that Act is payable. | ☐ | ☐ | ☐ | Cl. 22 — 43B(h) |
| I. PARTNERS / RELATED PARTIES | |||||
| 37 | A complete list of persons specified under section 40A(2)(b) (relatives, partners, sister concerns etc.) and ALL transactions with them has been provided; the list is complete. | ☐ | ☐ | ☐ | Cl. 23 |
| 38 | Interest and remuneration to partners is as per the partnership deed (copy provided, including supplementary deeds) and within the limits of section 40(b). | ☐ | ☐ | ☐ | Cl. 9 / Ann. B |
| 39 | There is no change in partners or profit-sharing ratio during the year, except as evidenced by the deed provided. | ☐ | ☐ | ☐ | Cl. 9(b) |
| J. CAPITAL, INVESTMENTS & PROPERTY | |||||
| 40 | Source and supporting evidence of all fresh capital introduced during the year has been provided. | ☐ | ☐ | ☐ | 3(a) — Capital |
| 41 | Demat statements / FD certificates / confirmations for all investments have been provided. | ☐ | ☐ | ☐ | 3(a) — Investments |
| 42 | No immovable property was purchased or sold during the year; where transacted, the registered deed and stamp duty value have been provided (sections 43CA / 50C / 56(2)(x)). | ☐ | ☐ | ☐ | Cl. 17 / 29B |
| 43 | No capital asset was converted into stock-in-trade during the year, except as disclosed with cost and date of acquisition. | ☐ | ☐ | ☐ | Cl. 15 |
| K. OTHER DISCLOSURES | |||||
| 44 | No demand was raised or refund issued during the year under any tax law other than the Income-tax Act and Wealth-tax Act, except as disclosed in writing. | ☐ | ☐ | ☐ | Cl. 41 |
| 45 | All income (including interest, commission, rent, scrap sales, subsidies, export incentives, capital receipts) has been credited to the profit & loss account or disclosed to you. | ☐ | ☐ | ☐ | Cl. 16 |
| 46 | No prior-period income or expenditure is included in this year’s profit & loss account, except as identified to you. | ☐ | ☐ | ☐ | Cl. 27(b) |
| 47 | We are not required to furnish statements in Form 61 / 61A (SFT) / 61B, and are not part of an international group liable to CbCR under section 286. | ☐ | ☐ | ☐ | Cl. 42 / 43 |
| 48 | No cost audit / excise audit / service-tax valuation audit was conducted during the year; where conducted, the report has been provided. | ☐ | ☐ | ☐ | Cl. 37-39 |
| 49 | We have not entered into any impermissible avoidance arrangement as referred to in section 96 (GAAR). | ☐ | ☐ | ☐ | Cl. 30C |
| 50 | All events occurring after the balance-sheet date which materially affect the accounts have been disclosed to you. | ☐ | ☐ | ☐ | SA 560 |
DECLARATION
- The answers given above are true and correct and cover the entire previous year. Wherever the answer is “No” or “N.A.”, the relevant facts have been stated to you in writing, and we accept that suitable observations/qualifications will be reported in the audit report and Form 3CD.
- We have made available to you all books of account, records, documents, information and explanations, and there are no other books of account, bank accounts, transactions or liabilities other than those disclosed above and in the books produced.
- The financial statements are free from material misstatement, whether due to fraud or error, and the preparation of the financial statements and of the particulars in Form 3CD is our responsibility. Figures, values and quantities certified by us (including cash balance, closing stock, personal expenses, related-party list and MSME status of suppliers) may be relied upon by you.
- We undertake to inform you in writing of any event occurring after the date of this declaration but before the date of your report which may affect the financial statements or the particulars in Form 3CD.
Place: ______________ Date: ______________
For ____________________________________________
(Proprietor / Partner / Director — Name, Signature & Seal)
