Income Tax department has published the Latest Form 3CD for AY 2018-19 (Financial Year 2017-18). Like previous years, this year’s Form 3CD also has some amendments. We have tried to assemble all the changes in Form 3CD as compared to Last year and given below for your ready reference with suggestive measure for such changes. The new Form 3CD is applicable from August 20, 2018. So here are the suggestive measures for changes in form 3CD.

SUGGESTIVE MEASURES FOR CHANGES IN FORM 3CD

_____________________

*Point No & Particular of TAR* Form 3CD

  1. ”Whether the assessee is liable to pay indirect tax like excise duty, service tax, sales tax, goods and services tax, customs duty, etc. if yes, please furnish the registration number or GST number or any other identification number allotted for the same”

*Sugg. measure*

GSTIN to be cited in Form 3CD from now onwards.

_____________________

*Point No & Particular of TAR* Form 3CD

19.Sec 32AD has been added to the table under clause 19

*Sugg. measure*

The amount allowed under section 32AD of the income tax 1961 is to be reported

_____________________

*Point No & Particular of TAR* Form 3CD

24.”Amounts deemed to be profits and gains under section 32AC or 32AD or 33AB or 33ABA or 33AC”

*Sugg. measure*

Deemed gain under Sec 35AD is to be reported

_____________________

*Point No & Particular of TAR* Form 3CD

  1. Clause (g) of Sec 43B which relates to ‘Sum payable to Indian Railways for use of Railway assets’ has been inserted.

*Sugg. measure*

The required particulars related to Clause (g) of Sec 43B are to be reported.

_____________________

*Point No & Particular of TAR*

29A. New Clause 29A has been inserted as follows:”(a) Whether any amount is to be included as income chargeable under the head ‘income from other sources’ as referred to in clause (ix) of sub-section (2) of section 56? (Yes/No)

(b) If yes, please furnish the following details:

(i) Nature of income:

(ii) Amount thereof:’

*Sugg. measure*

Any advance taken on transfer of property which has been forfeited is to be reported in this clause

_____________________

*Point No & Particular of TAR* Form 3CD

29B. New Clause 29B has been inserted as follows:

”(a) Whether any amount is to be included as income chargeable under the head ‘income from other sources’ as referred to in clause (x) of sub-section (2) of section 56? (Yes/No)

(b) If yes, please furnish the following details:

(i) Nature of income:

(ii) Amount (in Rs.) thereof:’

*Sugg. measure*AMENDMENTS IN FORM 3CD FOR AY 2018-19

Any gift received which has to be deemed as income in compliance with Sec 56(2)(x) is to be reported in this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

30A. New Clause 30A has been inserted as follows:

”(a) Whether primary adjustment to transfer price, as referred to in sub-section (1) of section 92CE, has been made during the previous year? (Yes/No)

(b) If yes, please furnish the following details:-

(i) Under which clause of sub-section (1) of section 92CE primary adjustment is made?

(ii) Amount (in Rs.) of primary adjustment:

(iii) Whether the excess money available with the associated enterprise is required to be repatriated to India as per the provisions of sub-section (2) of section 92CE? (Yes/No)

(iv) If yes, whether the excess money has been repatriated within the prescribed time (Yes/No)

(v) If no, the amount (in Rs.) of imputed interest income on such excess money which has not been repatriated within the prescribed time:”

*Sugg. measure*

Particulars regarding the ‘Primary Adjustments in Transfer Pricing’ as per Sec 92CE(1) are to be reported in this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

30B. New Clause 30B has been inserted as follows:

(a) Whether the assessee has incurred expenditure during the previous year by way of interest or of similar nature exceeding one crore rupees as referred to in sub-section (1) of section 94B? (Yes/No)

(b) If yes, please furnish the following details:-

(i) Amount (in Rs.) of expenditure by way of interest or of similar nature incurred:

(ii) Earnings before interest, tax, depreciation and amortization (EBITDA) during the previous year (in Rs.):

(iii) Amount (in Rs.) of expenditure by way of interest or of similar nature as per (i) above which exceeds 30% of EBITDA as per (ii) above:

(iv) Details of interest expenditure brought forward as per sub-section (4) of section 94B: AY and Amount (Rs.)

(v) Details of interest expenditure carried forward as per sub-section (4) of section 94B: AY and Amount (Rs.)

*Sugg. measure*

If the interest expenditure on borrowing made from AE exceed 30% on EBITDA, assessee will have to report in this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

30C. New Clause 30C has been inserted as follows:

”(a) Whether the assessee has entered into an impermissible avoidance arrangement, as referred to in section 96, during the previous year? (Yes/No)

(b) If yes, please specify:-

(i) Nature of the impermissible avoidance arrangement:

(ii) Amount (in Rs.) of tax benefit in the previous year arising, in aggregate, to all the parties to the arrangement:’

*Sugg. measure*

In case the assessee has entered into an impermissible avoidance arrangement during the year, it shall have to report its details under this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

  1. Four new entries (ba), (bb), (bc) & (bd) have been inserted in Clause 31 –

“(ba) Particulars of each receipt in an amount exceeding the limit specified in section 269ST, in aggregate from a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion from a person, during the previous year, where such receipt is otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account:-

(i) Name, address and Permanent Account Number (if available with the assessee) of the payer;

(ii) Nature of transaction;

(iii) Amount of receipt (in Rs.);

(iv) Date of receipt;

(bb) Particulars of each receipt in an amount exceeding the limit specified in section 269ST, in aggregate from a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion from a person, received by a cheque or bank draft, not being an account payee cheque or an account payee bank draft, during the previous year:—

(i) Name, address and Permanent Account Number (if available with the assessee) of the payer;

(ii) Amount of receipt (in Rs.);

(bc) Particulars of each payment made in an amount exceeding the limit specified in section 269ST, in aggregate to a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion to a person, otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account during the previous year:-

(i) Name, address and Permanent Account Number (if available with the assessee) of the payee;

(ii) Nature of transaction;

(iii) Amount of payment (in Rs.);

(iv) Date of payment;

(bd) Particulars of each payment in an amount exceeding the limit specified in section 269ST, in aggregate to a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion to a person, made by a cheque or bank draft, not being an account payee cheque or an account payee bank draft, during the previous year:—

(i) Name, address and Permanent Account Number (if available with the assessee) of the payee;

(ii) Amount of payment (in Rs.);

(Particulars at (ba), (bb), (bc) and (bd) need not be given in the case of receipt by or payment to a Government company, a banking Company, a post office savings bank, a cooperative bank or in the case of transactions referred to in section 269SS or in the case of persons referred to in Notification No. S.O. 2065(E) dated 3rd July, 2017)’

*Sugg. measure*

Receipts & Payment exceeding the limit specified in Sec 269ST from non-banking channel is to be reported under clause 31

_____________________

*Point No & Particular of TAR* Form 3CD

  1. Following substitutions have been made in the clause 31 –

”(c) Particulars of each repayment of loan or deposit or any specified advance in an amount exceeding the limit specified in section 269T made during the previous year:—

(i) name, address and Permanent Account Number (if available with the assessee) of the payee;

(ii) amount of the repayment;

(iii) maximum amount outstanding in the account at any time during the previous year;

(iv) whether the repayment was made by cheque or bank draft or use of electronic clearing system through a bank account;

(v) in case the repayment was made by cheque or bank draft, whether the same was taken or accepted repaid by an account payee cheque or an account payee bank draft.

(d) Particulars of repayment of loan or deposit or any specified advance in an amount exceeding the limit specified in section 269T received otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account during the previous year:—

(i) name, address and Permanent Account Number (if available with the assessee) of the lender, or depositor or person from whom specified advance is received;

(ii) amount of repayment of loan or deposit or any specified advance received otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account during the previous year.

(e) Particulars of repayment of loan or deposit or any specified advance in an amount exceeding the limit specified in section 269T received by a cheque or bank draft which is not an account payee cheque or account payee bank draft during the previous year:—

(i) name, address and Permanent Account Number (if available with the assessee) of the lender, or depositor or person from whom specified advance is received;

(ii) amount of repayment of loan or deposit or any specified advance received by a cheque or a bank draft which is not an account payee cheque or account payee bank draft during the previous year.’

*Sugg. measure*

Receipts & Payment exceeding the limit specified in Sec 269T from non-banking channel is to be reported under clause 31

_____________________

*Point No & Particular of TAR* Form 3CD

  1. In the item (b), following substitutions are to be made:

”(b) whether the assessee has furnishedis required to furnish the statement of tax deducted or tax collected within the prescribed time. If not yes, please furnish the details:

Tax Deduction and Collection Account Number (TAN)

Type of Form

Due date for furnishing

Whether the statement of tax deducted or collected contains information about all the transactions which are required to be reported. If not, please furnish list of details/ transactions which are not reported.

*Sugg. measure*

In case, any transactions has not been reported in the TDS/TCS return, its details need to be specified under this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

36A. New Clause 36A has been inserted as follows:

(a) Whether the assessee has received any amount in the nature of dividend as referred to in sub-clause (e) of clause (22) of section 2? (Yes/No)

(b) If yes, please furnish the following details:-

(i) Amount received (in Rs.):

(ii) Date of receipt:’;

*Sugg. measure*

Any Deemed dividend as per Sec 2(22)(e) received during the year is to be reported in this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

  1. New Clause 42 has been inserted as follows:

“(a) Whether the assessee is required to furnish statement in Form No.61 or Form No. 61A or Form No. 61B? (Yes/No)

(b) If yes, please furnish:

Income-tax Department Reporting Entity Identification Number

Type of Form

Due date of furnishing

Date of Furnishing, if furnished

Whether the Form contains information about all details/ transactions which are required to be reported. If not, please furnish

list of the details/transactions which are not reported.

*Sugg. measure*

In case, the assessee is required to furnish Form 61 or 61A (Statement of Reportable Account) or 61B (Statement of Financial Transactions) during the year shall have to report under clause 42.

_____________________

*Point No & Particular of TAR* Form 3CD

  1. New Clause 43 has been inserted as follows:

“(a) Whether the assessee or its parent entity or alternate reporting entity is liable to furnish the report as referred to in sub-section (2) of section 286 (Yes/No)

(b) if yes, please furnish the following details:

(i) Whether report has been furnished by the assessee or its parent entity or an alternate reporting entity

(ii) Name of parent entity

(iii) Name of alternate reporting entity (if applicable)

(iv) Date of furnishing of report’

*Sugg. measure*

If the entity is required to furnish Country-by-country report in compliance of Sec 286 shall have to mention the required particulars in this clause

_____________________

*Point No & Particular of TAR* Form 3CD

  1. New Clause 44 has been inserted as follows:

“Break-up of total expenditure of entities registered or not registered under the GST:

Total Amount of Expenditure incurred during the year

Expenditure in respect of entities registered under GST

Relating to goods or services exempt from GST

Relating to entities falling under composition scheme

Relating to other registered entities

Total payment to registered entities

Expenditure relating to entities not registered under GST

*Sugg. measure*

Assessees have to report the expenditure under GST incurred during the year in this clause*Suggestive measures for changes in Form 3CD applicable from 20th August*

_____________________

*Point No & Particular of TAR* Form 3CD

  1. ”Whether the assessee is liable to pay indirect tax like excise duty, service tax, sales tax, goods and services tax, customs duty, etc. if yes, please furnish the registration number or GST number or any other identification number allotted for the same”

*Sugg. measure*

GSTIN to be cited in Form 3CD from now onwards.

_____________________

*Point No & Particular of TAR* Form 3CD

19.Sec 32AD has been added to the table under clause 19

*Sugg. measure*

The amount allowed under section 32AD of the income tax 1961 is to be reported

_____________________

*Point No & Particular of TAR* Form 3CD

24.”Amounts deemed to be profits and gains under section 32AC or 32AD or 33AB or 33ABA or 33AC”

*Sugg. measure*

Deemed gain under Sec 35AD is to be reported

_____________________

*Point No & Particular of TAR* Form 3CD

  1. Clause (g) of Sec 43B which relates to ‘Sum payable to Indian Railways for use of Railway assets’ has been inserted.

*Sugg. measure*

The required particulars related to Clause (g) of Sec 43B are to be reported.

_____________________

*Point No & Particular of TAR* Form 3CD

29A. New Clause 29A has been inserted as follows:

”(a) Whether any amount is to be included as income chargeable under the head ‘income from other sources’ as referred to in clause (ix) of sub-section (2) of section 56? (Yes/No)

(b) If yes, please furnish the following details:

(i) Nature of income:

(ii) Amount thereof:’

*Sugg. measure*

Any advance taken on transfer of property which has been forfeited is to be reported in this clause

_____________________

*Point No & Particular of TAR* Form 3CD

29B. New Clause 29B has been inserted as follows:

”(a) Whether any amount is to be included as income chargeable under the head ‘income from other sources’ as referred to in clause (x) of sub-section (2) of section 56? (Yes/No)

(b) If yes, please furnish the following details:

(i) Nature of income:

(ii) Amount (in Rs.) thereof:’

*Sugg. measure*

Any gift received which has to be deemed as income in compliance with Sec 56(2)(x) is to be reported in this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

30A. New Clause 30A has been inserted as follows:

”(a) Whether primary adjustment to transfer price, as referred to in sub-section (1) of section 92CE, has been made during the previous year? (Yes/No)

(b) If yes, please furnish the following details:-

(i) Under which clause of sub-section (1) of section 92CE primary adjustment is made?

(ii) Amount (in Rs.) of primary adjustment:

(iii) Whether the excess money available with the associated enterprise is required to be repatriated to India as per the provisions of sub-section (2) of section 92CE? (Yes/No)

(iv) If yes, whether the excess money has been repatriated within the prescribed time (Yes/No)

(v) If no, the amount (in Rs.) of imputed interest income on such excess money which has not been repatriated within the prescribed time:”

*Sugg. measure*

Particulars regarding the ‘Primary Adjustments in Transfer Pricing’ as per Sec 92CE(1) are to be reported in this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

30B. New Clause 30B has been inserted as follows:

(a) Whether the assessee has incurred expenditure during the previous year by way of interest or of similar nature exceeding one crore rupees as referred to in sub-section (1) of section 94B? (Yes/No)

(b) If yes, please furnish the following details:-

(i) Amount (in Rs.) of expenditure by way of interest or of similar nature incurred:

(ii) Earnings before interest, tax, depreciation and amortization (EBITDA) during the previous year (in Rs.):

(iii) Amount (in Rs.) of expenditure by way of interest or of similar nature as per (i) above which exceeds 30% of EBITDA as per (ii) above:

(iv) Details of interest expenditure brought forward as per sub-section (4) of section 94B: AY and Amount (Rs.)

(v) Details of interest expenditure carried forward as per sub-section (4) of section 94B: AY and Amount (Rs.)

*Sugg. measure*

If the interest expenditure on borrowing made from AE exceed 30% on EBITDA, assessee will have to report in this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

30C. New Clause 30C has been inserted as follows:

”(a) Whether the assessee has entered into an impermissible avoidance arrangement, as referred to in section 96, during the previous year? (Yes/No)

(b) If yes, please specify:-

(i) Nature of the impermissible avoidance arrangement:

(ii) Amount (in Rs.) of tax benefit in the previous year arising, in aggregate, to all the parties to the arrangement:’

*Sugg. measure*

In case the assessee has entered into an impermissible avoidance arrangement during the year, it shall have to report its details under this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

  1. Four new entries (ba), (bb), (bc) & (bd) have been inserted in Clause 31 –

“(ba) Particulars of each receipt in an amount exceeding the limit specified in section 269ST, in aggregate from a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion from a person, during the previous year, where such receipt is otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account:-

(i) Name, address and Permanent Account Number (if available with the assessee) of the payer;

(ii) Nature of transaction;

(iii) Amount of receipt (in Rs.);

(iv) Date of receipt;

(bb) Particulars of each receipt in an amount exceeding the limit specified in section 269ST, in aggregate from a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion from a person, received by a cheque or bank draft, not being an account payee cheque or an account payee bank draft, during the previous year:—

(i) Name, address and Permanent Account Number (if available with the assessee) of the payer;

(ii) Amount of receipt (in Rs.);

(bc) Particulars of each payment made in an amount exceeding the limit specified in section 269ST, in aggregate to a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion to a person, otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account during the previous year:-

(i) Name, address and Permanent Account Number (if available with the assessee) of the payee;

(ii) Nature of transaction;

(iii) Amount of payment (in Rs.);

(iv) Date of payment;

(bd) Particulars of each payment in an amount exceeding the limit specified in section 269ST, in aggregate to a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion to a person, made by a cheque or bank draft, not being an account payee cheque or an account payee bank draft, during the previous year:—

(i) Name, address and Permanent Account Number (if available with the assessee) of the payee;

(ii) Amount of payment (in Rs.);

(Particulars at (ba), (bb), (bc) and (bd) need not be given in the case of receipt by or payment to a Government company, a banking Company, a post office savings bank, a cooperative bank or in the case of transactions referred to in section 269SS or in the case of persons referred to in Notification No. S.O. 2065(E) dated 3rd July, 2017)’

*Sugg. measure*

Receipts & Payment exceeding the limit specified in Sec 269ST from non-banking channel is to be reported under clause 31

_____________________

*Point No & Particular of TAR* Form 3CD

  1. Following substitutions have been made in the clause 31 –

”(c) Particulars of each repayment of loan or deposit or any specified advance in an amount exceeding the limit specified in section 269T made during the previous year:—

(i) name, address and Permanent Account Number (if available with the assessee) of the payee;

(ii) amount of the repayment;

(iii) maximum amount outstanding in the account at any time during the previous year;

(iv) whether the repayment was made by cheque or bank draft or use of electronic clearing system through a bank account;

(v) in case the repayment was made by cheque or bank draft, whether the same was taken or accepted repaid by an account payee cheque or an account payee bank draft.

(d) Particulars of repayment of loan or deposit or any specified advance in an amount exceeding the limit specified in section 269T received otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account during the previous year:—

(i) name, address and Permanent Account Number (if available with the assessee) of the lender, or depositor or person from whom specified advance is received;

(ii) amount of repayment of loan or deposit or any specified advance received otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account during the previous year.

(e) Particulars of repayment of loan or deposit or any specified advance in an amount exceeding the limit specified in section 269T received by a cheque or bank draft which is not an account payee cheque or account payee bank draft during the previous year:—

(i) name, address and Permanent Account Number (if available with the assessee) of the lender, or depositor or person from whom specified advance is received;

(ii) amount of repayment of loan or deposit or any specified advance received by a cheque or a bank draft which is not an account payee cheque or account payee bank draft during the previous year.’

*Sugg. measure*

Receipts & Payment exceeding the limit specified in Sec 269T from non-banking channel is to be reported under clause 31

_____________________

*Point No & Particular of TAR* Form 3CD

  1. In the item (b), following substitutions are to be made:

”(b) whether the assessee has furnishedis required to furnish the statement of tax deducted or tax collected within the prescribed time. If not yes, please furnish the details:

Tax Deduction and Collection Account Number (TAN)

Type of Form

Due date for furnishing

Whether the statement of tax deducted or collected contains information about all the transactions which are required to be reported. If not, please furnish list of details/ transactions which are not reported.

*Sugg. measure*

In case, any transactions has not been reported in the TDS/TCS return, its details need to be specified under this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

36A. New Clause 36A has been inserted as follows:

(a) Whether the assessee has received any amount in the nature of dividend as referred to in sub-clause (e) of clause (22) of section 2? (Yes/No)

(b) If yes, please furnish the following details:-

(i) Amount received (in Rs.):

(ii) Date of receipt:’;

*Sugg. measure*

Any Deemed dividend as per Sec 2(22)(e) received during the year is to be reported in this clause.

_____________________

*Point No & Particular of TAR* Form 3CD

  1. New Clause 42 has been inserted as follows:

“(a) Whether the assessee is required to furnish statement in Form No.61 or Form No. 61A or Form No. 61B? (Yes/No)

(b) If yes, please furnish:

Income-tax Department Reporting Entity Identification Number

Type of Form

Due date of furnishing

Date of Furnishing, if furnished

Whether the Form contains information about all details/ transactions which are required to be reported. If not, please furnish

list of the details/transactions which are not reported.

*Sugg. measure*

In case, the assessee is required to furnish Form 61 or 61A (Statement of Reportable Account) or 61B (Statement of Financial Transactions) during the year shall have to report under clause 42.

_____________________

*Point No & Particular of TAR* Form 3CD

  1. New Clause 43 has been inserted as follows:

“(a) Whether the assessee or its parent entity or alternate reporting entity is liable to furnish the report as referred to in sub-section (2) of section 286 (Yes/No)

(b) if yes, please furnish the following details:

(i) Whether report has been furnished by the assessee or its parent entity or an alternate reporting entity

(ii) Name of parent entity

(iii) Name of alternate reporting entity (if applicable)

(iv) Date of furnishing of report’

*Sugg. measure*

If the entity is required to furnish Country-by-country report in compliance of Sec 286 shall have to mention the required particulars in this clause

_____________________

*Point No & Particular of TAR* Form 3CD

  1. New Clause 44 has been inserted as follows:

“Break-up of total expenditure of entities registered or not registered under the GST:

Total Amount of Expenditure incurred during the year

Expenditure in respect of entities registered under GST

Relating to goods or services exempt from GST

Relating to entities falling under composition scheme

Relating to other registered entities

Total payment to registered entities

Expenditure relating to entities not registered under GST

*Sugg. measure*

Assessees have to report the expenditure under GST incurred during the year in this clause

That’s all for Amendments in Form 3CD for AY 2018-19. Keep Sharing.

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