CBDT allows the tax audit report to be revised in the event of a recalculation of the non-admission and notifies the rules
The Central Board of Direct Taxes has announced changes to income tax regulations that will allow the tax audit reports to be revised if it is necessary to recalculate the deductible and non-deductible amounts set out in the Income Tax Act on an ineligible basis.
“The audit report submitted under this rule may be revised by the individual by submitting a revised audit report by an accountant, duly signed and verified by that accountant, prior to the end of the relevant valuation year for which the report applies. If, after submitting the report under sub-rule (1) and (2), that person makes a payment that requires a recalculation of the non-admission under Section 40 or Section 43B, ”the Board said in a notice posted on Friday.
Section 40 relates to amounts that are non-deductible in calculating income to be offset against profits of any business or profession, while Section 43B relates to amounts that may be deducted from the assessor’s actual payments .
The Board of Directors has amended Form 3CD – for filing the tax audit report – accordingly, adding a clause to Part A mentioning the tax option chosen by the beneficiary as part of the tax relief system introduced and entered into force by the government in 2019 in the previous one Union budget.
India had lowered the corporate tax rate to 22% for existing companies and 15% for new production units on condition that companies do not benefit from any exemption or deductions.
Part B of the tax audit form now contains the estimated value of an immovable asset, such as land, buildings, or both, that was transferred in the past year for consideration less than that accepted or valued or valued by a state government agency.
The changes to Form 3CD include information on loss carryforwards or value adjustments, as well as mentioning the exclusion of amortization of the goodwill of a company or profession and the adjustment of the amortized value of the intangible asset.
In the 2021 Union budget, the government changed the Finance Act, according to which the amortized value of goodwill carried forward from previous years is excluded or reduced from the amortized value of the asset block from the assessment year 2021-22.