INSTRUCTIONS ON E FILING OF TAX AUDIT AND OTHER REPORTS

Transcription

1 INSTRUCTIONS ON E FILING OF TAX AUDIT AND OTHER REPORTS (Contributed by CA. Laksh Gala) Why E Filing??? Previously, assessees were only required to E File their Income Tax Return. There were cases being found where assessee deliberately did not disclose some remarks of Tax Auditor or did not disallow some expenses, even if they were disallowed by Tax Auditor. Since the return did not contain tax audit report, it was not possible for the Income Tax Department (ITD) to trace such instances. Further, ICAI along with CBDT had carried out a thorough check of various Tax audit reports and observed the following: 1. A Number of Tax Audit reports were filed by the assessee by quoting Fake Membership details of the Chartered Accountants. 2. There were cases were the members conducted tax audits in excess of specified limit of Members holding Part time COP or NO COP had also conducted Tax Audits. To curb the above malpractices, bring in more transparency and easy availability of data, with effect from A.Y , e filing of Tax Audit Reports under section 44AB alongwith the Financial Statements have been made mandatory. Also E Fling of other reports, if any, applicable to the assessee viz audit report under section 92E, audit report under section 115JB, audit report under section 10(23C), 10A, 80IA, 80IB have been made mandatory. Steps in E Filing of Audit Report I. Creation of Auditors Login 1. Every auditor/certifying CA being the new user for A.Y will have to follow the below mentioned steps for registration: Click on the Register Yourself button given on the e filing website. ( Filing/Registration/RegistrationHome.html) Registration Form screen will appear, select Chartered Accountants under the head Tax Professional and click on the CONTINUE button The REGISTRATION FORM AUTHORIZED REPRESENTATIVES REGISTRATION screen will appear

2 Enter the details, upload the Digital Signature Certificate (DSC) and click on the CONTINUE button On successful validation, you will be directed to the next page of registration, where the user ID is provided by the department which will be ARCA+membership number Then you have to enter the password details, contact details and Postal address, password should be alpha numerical with one special character and one capital letter Enter the Captcha Code displayed on the screen and click on the SUBMIT button 2. On successful registration, a message will be displayed alongwith your Transaction ID. 3. A link to activate the account will be sent to your registered ID and an alert will also be sent on the registered mobile number. Make sure you provide a valid mobile number and ID as all the future communications will be sent to this mobile number and ID. 4. To login to the E Filing portal you must activate your account from the activation link sent to your registered ID. II. Adding of Auditor Name in the Client Login 1. To enable the CA to upload the applicable forms on the assessee behalf, the assessee needs to first ADD CA from his My Account section. Following steps needs to be followed to ADD CA : Assessee should Login to e Filing portal Go to My Account Add CA Enter the Membership Number of the CA (name will come automatically if the CA is registered with as Professional), select the Forms as applicable (3CA 3CD, 3CB 3CD, etc) and Assessment Year Enter the Captcha Code displayed on the screen and click on the SUBMIT button 2. There is also a provision to dis engage CA in user account of assessee if assessee wants to change his tax auditor. 3. The assessee can add only those CA who is registered with E Filing Application of ITD. III. Filing of Audit Report 1. There are two methods for filing of various Report, Online and Offline method.

3 2. Form 3CA 3CD, 3CB 3CD, 29B etc can only be filed Offline whereas other forms viz Form 3AC, 3AD etc can only be filed Online. 3. Following steps needs to be followed for Online Method of Filing: CA has to login with the registered user ID Go to 'e File' menu and select "Prepare and Submit Online Form(Other than ITR)" Enter the Tax payer s PAN, CA s PAN; select the Form Name (3AC, 3AD, etc) and the Assessment Year Upload Digital Signature Certificate Click on 'SUBMIT' Enter the data and Click on 'SUBMIT' 4. Following steps needs to be followed for Offline Method of Filing: CA has to login with the registered user ID Go to 'e File' menu and select Upload Form Enter the Tax payer s PAN, CA s PAN; select the Form Name (3CA 3CD, 3CB 3CD, etc) and the Assessment Year Browse and Select the XML file Upload Digital Signature Certificate Alongwith the tax audit report, the CA will also have to upload the scanned copies of the Balance Sheet and Profit and Loss Statement, if the concerned assessee has to have a cost audit or an excise audit done or any other audit, then those reports also has to be scanned and uploaded Click on 'SUBMIT' 5. On successful upload, the Form is sent to Tax Payer's workflow for acceptance. 6. The Tax Payer should LOGIN to e Filing application, GO TO Work list and accept/reject the form. On Approval, the Form is successfully submitted with e Filing application. No further action is required. If rejected, the Tax Professional can file the Form again and follow the same process as mentioned above. 7. In case if CA wants to review the pending form for approval the same can be reviewed from My request List menu, where the list of Form which are pending for approval from the assessee are listed. IV. Acceptance of Audit Report by Client

4 1. Assessee has to login through his Login Credentials after which the Dashboard will appear on the screen. 2. Go to Worklist menu List of Reports uploaded by CA Pending for Approval will appear. 3. Click on View Form to view the Form and Attachment. 4. Assessee can download the Attachment and Report uploaded by CA. 5. Assessee then needs to select Approve and affix his Digital Signature to submit the Form. 6. On successful upload, Upload Screen will appear. 7. Assessee can also reject the Form. However, reasons for rejections must be mentioned at the time of Rejection. 8. Assessee can generate the Acknowledgement Number from the My Account menu under My Returns / Forms by clicking on the Return Acknowledgement Number. V. Steps to verify the Forms submitted by the Assessee 1. There are some Statutory Forms like Form 62 (certificate for prescribed level of production by amalgamated company), Form 63 (income distributed by UTI), Form 63A (Income distributed by mutual fund) and Form 64 (income distributed by venture capital u/s 115U) which needs to be initiated by Assessee and reviewed by CA. On finding the Forms in order, CA will approve and an acknowledgment number is generated. 2. Following steps needs to be followed for verification of forms submitted by the Assessee: The CA should LOGIN to e Filing application Then GO TO Worklist and verify the Income Tax Form submitted by the Assessee Upload Digital Signature Certificate Click on 'SUBMIT' The Form is successfully submitted with e Filing application. No further action is required. Precautions while E Filling 1. The Chartered Accountant is advised to obtain an appointment letter from assessee for appointing him as a Tax Auditor before the assessee ADD CA in user his account. 2. Auditor s DOB in Institutes record and on PAN should be same. 3. Auditor should have PAN based class II DSC.

5 4. The surname of the auditor on the PAN, DSC and Institute record should be same. 5. The XML of Audit Report needs to be stored in C:\fakepath. 6. Do not file Income Tax Return as you have to update E Filing of Audit Report Date in Return. 7. Attachments cannot exceed 50mb and it should be in zip or pdf format only. 8. Wherever information in percentage is required, just enter the value without "%" sign 9. Where any requirements in the form are answered in negative or with a qualification, give reason for the same. Also note that there are only 1000 characters allowed to state the reason. 10. All the annexure to this form must be filled up, failing to which it would be considered as incomplete. 11. Alongwith this form, it is mandatory to file a signed Statutory Audit Report. In case if the Tax and Statutory auditors are different then the Tax Auditor has to obtain the statutory audit report from the assessee. 12. For each and every field to be entered a maximum number of characters are assigned and accordingly details are to be filled. 13. Department provides option to fill the form online as well as offline. In order to fill this form offline, you need to have a Java version 7 update 6 or above. Or you can download the same from the website

6 List of Offline Forms to be uploaded by the Assessee Offline Forms Form No. Applicable Particulars of Report/ statement/ Certificates Section of the Income Tax Act, CA 3CD 44AB Assessees carrying on business or profession whose sales, turnover or gross receipts exceed Rs.1 Crore (Rs.25 lakhs in the case of profession) as per the provisions of section 44AB, and assessees who claim their income to be lower than the profits or gains deemed to be the profits and gains of their business under sections 44AD, 44AE, 44BB or 44BBB. 3CB 3CD 44AB Assessees carrying on business or profession whose sales, turnover or gross receipts exceed Rs.1 Crore (Rs.25 lakhs in the case of profession) as per the provisions of section 44AB, and assessees who claim their income to be lower than the profits or gains deemed to be the profits and gains of their business under sections 44AD, 44AE, 44BB or 44BBB. 3CEB 92E Every person who has entered into an International transaction or specified domestic transaction as per the requirement of section 92E of the Act. 6B 142 (2A) Assessees who have been ordered by the Assessing Officer with the previous approval of the Chief Commissioner or Commissioner under section 142(2A) to get their books of account audited having regard to the nature and complexity of the accounts, volume of accounts, doubts about the correctness of the accounts, multiplicity of transactions in the accounts or specialized nature of business activity of the assessee and the interests of the revenue. 10B 12A(b) Assessee being a trust or institution claiming deduction u/s 11 & 12 as per the requirement of section 12A(b). 10BB 10(23C)(iv)/( v)/(vi)/(via) Assessee being any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub clause (iv) or sub clause (v) or subclause (vi) or subclause (via) of section 10(23C) claiming exemption under section 10(23C). 29B 115JB (4) Corporate assessees liable to pay Minimum Alternate tax under section 115JB of the Act, to furnish a report from an accountant certifying the

7 computation of book profits. List of Online Forms to be uploaded by the Assessee Online Forms Form No. Applicable Particulars of Report/ statement/ Certificates Section of the Income Tax Act, AC 33AB (2) Assessees carrying on the business of growing and manufacturing tea/coffee/rubber claiming deduction under section 33AB. 3AD 33ABA (2) Assessees carrying on business consisting of the prospecting for, or extraction or production of, petroleum or natural gas or both in India and in relation to which the Central Government has entered into an agreement for the purpose of deposit in Special Account/ Site Restoration Account under section 33ABA. 3AE 35D (4) and 35E (6) Assessees other than companies or cooperative societies claiming amortisation of certain preliminary expenses under section 35D and assessee being Indian company or a non corporate resident claiming deduction for expenditure on prospecting etc. for certain minerals under section 35E. 3CE 44DA (2) Assessee being a non resident (not being a company) or a foreign company receiving income by way of royalty or technical services from Government or India concern as per the provisions of section 44DA. 3CEA 50B (3) Every assessee who has effected slump sale in the previous year as per the provisions of section 50B. 10CCB 80 IA (7)/80 IB and 80 IC Assessees claiming deduction in respect of eligible businesses under sections 80 IA or 80 IB (except Multiplex Theatres/ Convention Centres/ hospitals in rural areas) and eligible undertakings/enterprises claiming deduction under section 80 IC. 10CCBBA 80 ID (3)(iv) Assessees claiming deduction under section 80 ID in respect of the profits and gains derived from the business of hotels and convention centres in aspecified areas. 10CCBC 80 IB (11B) Assessees claiming deduction under section 80 IB (11B) in respect of the

8 profits and gains from the business of operating and maintaining hospital in a rural area. 10CCBD 80 IB(11C) Assessees claiming deduction under section 80 IB (11C) in respect of the profits and gains from the business of operating and maintaining a hospital located anywhere in India other than the excluded area. 10CCC 80 IA (6) Assessees claiming deduction under section 80 IA (6) in respect of profits and gains of business of housing or other activities which are an integral part of a highway project. 10CCF 80LA (3) Assessees, being scheduled banks owning an offshore banking unit in a Special Economic Zone and International financial services centre, for claiming deduction under Section 80LA in respect of specified incomes. 10DA 80JJA (2)(b) Assessees, being Indian companies, claiming deduction under section 80JJAA, in respect of employment of new workmen. 49C 285 Assessee being a non resident having a liaison office in India prepare and deliver a statement containing such particulars as may be prescribed. 56F 10A Assessee claiming deduction under section 10A needs to furnish a report in the prescribed form certifying that the deduction has been correctly claimed VW(ii) Assessees engaged in the business of operating qualifying ships having opted for computation of income from such business under the tonnage tax scheme contained in chapter XII G of the Act to furnish a report under section 115VW of the Act U (2) Assessee being a venture capital company or a venture capital fund to furnish a statement giving details of the nature of income paid or credited during the previous year and other relevant details to be verified by an accountant as per section 115U.