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Query regarding forms 3cb and 3cd

SSG (1936 Points)

24 September 2016

In e-Form 3CB for a proprietorship firm, what should be mentioned in the name in point 1 - the name of the assessee or the name of the business? Please advise.

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7 Replies

Ashok Kumar (CA qualified) (389 Points)
Replied 24 September 2016

if you are talking about 'name of the assessee' in Form 3CD, it should be the name of the proprietor. In case of name, whose P&L and Balance sheet, you mention in Form 3CB, it should be the name of the business. In case of more than one business for the proprietor and you prepare combined P&L, you mention the name of the proprietor

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SSG (1936 Points)
Replied 24 September 2016

The name of the assessee in Form 3CD is being picked from Form 3CB. So it will pick one only - the name of the assessee or the name of the business.

Please also advise the procedure to be followed for efiling of Forms 3CB/3CD/ITR-4? Should the hard copies of 3CB and 3CD be taken first with signs of prop. and auditor, then e-forms should be filed or we can upload the e-forms first then hard copies of 3CB and 3CD be attached later.

Ashok Kumar (CA qualified) (389 Points)
Replied 24 September 2016

In case of being autofilled, it is better to give the proprietor name itself.

The procedure is as follows:

once the audit is completed, the P&L and b/s has to be signed by the proprietor and CA in hand. Form 3CB and Form 3CD has to be filled by the auditor and it is to be uploaded using the DSC of the CA. (as it is a CA certificate) While uploading you should also attach the scanned copies of the signed P&L and B/S. once it is uploaded, it has to be approved by the assessee from his e-filing account using his DSC. Once filing 3CB-3CD is done, the assessee has to file his ITR quoting the date of audit report (3CB) in his return using his DSC. Hard copies of 3CB-3CD is only for the documentation purpose.

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SSG (1936 Points)
Replied 24 September 2016

Thanks Ashok ji for your guidance. Please advise on few below points as well:-

1. Can the scanned copies of Balance Sheet and P&L a/c be uploaded later i.e. after efiling of forms forms 3cb and 3cd and filing of ITR? Does the scanned copies of annexures to balance sheet be also attached?

2. Is there any time/days gap between uploading of audit forms by CA and its viewing on assessee's profile on the income tax website?

Ashok Kumar (CA qualified) (389 Points)
Replied 24 September 2016

No, the scanned copies have to be attached on uploading the Form 3CD mandatorily. Annexures to balance sheet is not mandatory, but you can upload as a single pdf file along with the B/S if you wish to.

Generally there wont be any such gap. you can view it immediately on uploading the form from assessee's profile

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SSG (1936 Points)
Replied 28 September 2016

I am using utility for form 3CB3CD, downloaded from income tax website. Some of the columns in 3CD are N.A. or Nil. Should I leave these columns blank or enter 0 in them? If left blank, will that be considered as nil or zero.

Further the Profit & Loss a/c of the assessee has the interest income, that needs to be considered under "Income from Other Sources". Under which clause in form 3CD, that interest be disallowed.

Please advise.

Ashok Kumar (CA qualified) (389 Points)
Replied 30 September 2016

Some of the columns, if not applicable can be left blank. Mandatory fields be entered zero if there is no value. Anyway validation errors will be listed, after you have filled the form and when you try to submit it. So it will give the instructions on what to be filled.

Interest income need not be disallowed under any section. There is no requirement to mention about interest income in Form 3CD. It has to be subtracted from PGBP and shown under income from other sources in the Memo of Income, which is relevant only for IT computation and filling ITR. Form 3CD has no implication

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