ITR e-Filing Update: Tax Audit Forms Enabled With Changes For FY 2024-25

The Income Tax Department has activated the tax audit functionalities on its e-filing portal for the financial year 2024-25. The audit forms, Form 3CA-3CD and Form 3CB-3CD, are now live online and available through a newly launched common offline utility.

Changes In Audit Forms

Accompanying this rollout is a detailed schema change document listing 71 updates across the forms, 35 in Form 3CA-3CD and 36 in Form 3CB-3CD. These revisions are meant at improving transparency and aligning audit requirements with recent legislative changes.

Dates To Remember

While the forms have been upgraded, the filing deadlines remain unchanged. The last date to submit the tax audit report for FY 2024-25 is Sep. 30, 2025. Following this, taxpayers must file their Income Tax Returns (ITR) by Oct. 31, 2025.

Who Needs To File Tax Audit

Tax audits are mandatory for people or entities with income from business or professional sources that exceed prescribed thresholds. Such taxpayers are required to maintain detailed books of accounts and get them audited as per Section 44AB of the Income-tax Act.

New In Form 3CD

Many sections in Form 3CD have seen modifications, particularly Clause 22, which now requires more disclosure for dues to micro and small enterprises:

• Sub-clause (i): Interest disallowable under Section 23 of the MSMED Act must be reported.

• Sub-clause (ii): Total outstanding amounts to micro and small enterprises during the year need to be disclosed.

• Sub-clause (iii): Requires a split of payments made within the timeline under Section 15 and those made beyond it (which will be disallowed as deductions).

Five Additions And Changes

• Clause 12: Now includes reporting under Section 44BBC, introducing presumptive taxation for non-resident cruise ship operators.

• Clause 21: A separate column for settlement expenses has been added to reflect disallowance as per updated provisions.

• Clause 22: MSME-related disclosures are further segmented for clarity, including updates to sub-clauses and the addition of a new sub-clause (iii)(a).

• Clause 26: A reference to Section 43Bh has been incorporated.

• Clause 31a: Enhanced reporting for loans and deposits, including fields to specify whether they were via account payee instruments. Additionally, Clause 36B introduces new reporting norms for share buy-backs

Types Of Tax Audit Forms

• Form 3CA-3CD: Used when the taxpayer's accounts are already audited under another law (such as the Companies Act).

• Form 3CB-3CD: Applicable when the accounts are audited exclusively for income tax purposes.

Technical Requirements

To use the new offline utility, taxpayers must ensure that they have Microsoft Edge installed, as per the department's instructions.

These updates signal a push towards more rigorous compliance and structured reporting. Taxpayers and professionals should familiarise themselves with the new schema and ensure accurate disclosures to avoid last-minute hassles.