Rule 6G: Report of Audit of Accounts under Section 44AB

Business and Profession, Tax Ready Reckoner

Table of Contents

1. Purpose of Rule 6G

Prescribes the forms and mannerfor submitting tax audit reports
Mandates the format and contentsof audit reports to be filed
Ensures standardized disclosureof financial information to tax authorities

2. Key Forms Prescribed

FORM	APPLICABILITY	DUE DATE
Form 3CA	For taxpayers already required to audit under other laws (Companies Act, etc.)	30th September
Form 3CB	For taxpayers not required to audit under any other law	30th September
Form 3CD	Detailed statement of particulars (attached to both 3CA and 3CB)	30th September
Form 3CEB	For taxpayers with international/specified domestic transactions	31st October

3. Mandatory Disclosures in Form 3CD

General Information
- Assessee details
- Status and residential status
- Audit period
Financial Information
- Profit/loss as per books
- Adjustments made to book profit
- Depreciation claimed
Tax-Specific Disclosures
- Deductions claimed (80C, 80D, etc.)
- Deemed income (Sections 68-69D)
- TDS/TCS compliance
Additional Disclosures
- Related party transactions
- Unsecured loans taken/given
- Capital gains computations

4. Digital Compliance Requirements

Must be filed electronicallyusing:
- Chartered Accountant’s digital signature, or
- Electronic verification code (EVC)
No physical submission accepted

5. Consequences of Non-Compliance

Late Filing Fees: ₹100 per day (maximum ₹1,50,000)
Penalty: 0.5% of turnover or ₹1,50,000 (whichever is less)
Scrutiny Risk: Higher chance of tax department scrutiny

6. Special Cases

New Businesses: First year of operation may have different period coverage
Revised Returns: Requires fresh audit report if original contained errors
Multiple Businesses: Separate reports needed for different business verticals

7. Practical Challenges

Data Reconciliation: Between financial books and tax audit report
Documentation: Maintaining supporting documents for 6 years
Professional Judgement: Handling contentious issues like related party transactions