{"id":17538,"date":"2020-10-08T15:01:52","date_gmt":"2020-10-08T09:31:52","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=17538"},"modified":"2021-01-05T16:51:29","modified_gmt":"2021-01-05T11:21:29","slug":"cbdt-amends-the-tax-audit-report-form-3cd-itr-6-form-no-10-ie-and-10-if","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/cbdt-amends-the-tax-audit-report-form-3cd-itr-6-form-no-10-ie-and-10-if\/","title":{"rendered":"CBDT Amends the Tax Audit Report Form 3CD, ITR 6, Form No 10-IE and 10-IF"},"content":{"rendered":"\n<p class=\"has-drop-cap\">This Notification has come into force on a date of publication in an Official Gazette which was on <strong>1st Oct, 2020<\/strong>. If the ITR-6 or the Tax Audit Report in <strong>Form No. 3CD <\/strong>or <strong>Form No. 3CEB<\/strong> has been filed before that date then there is no need to revise the <strong>ITR-6<\/strong> or the <a href=\"https:\/\/corpbiz.io\/tax-audit\"><strong>tax audit<\/strong><\/a> report in view of changes so notified in a notification. However, if any of such return or report is not yet filed, it has to be filed according to an amended provision.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-amends-the-tax-audit-report-form-3cd-itr-6-form-no-10-ie-and-10-if\/#Highlights_of_the_Amendment\" >Highlights of the Amendment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-amends-the-tax-audit-report-form-3cd-itr-6-form-no-10-ie-and-10-if\/#Amendment_in_the_Rule_5_of_the_Income_Tax_Rules_1962\" >Amendment in the Rule 5 of the\nIncome Tax Rules, 1962<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-amends-the-tax-audit-report-form-3cd-itr-6-form-no-10-ie-and-10-if\/#Changes_in_Tax_Audit_Report_in_the_Form_No_3CD\" >Changes\nin Tax Audit Report in the Form No 3CD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-amends-the-tax-audit-report-form-3cd-itr-6-form-no-10-ie-and-10-if\/#Changes_in_Tax_Audit_Report_in_the_Form_No_3CEB\" >Changes in Tax Audit Report in\nthe Form No 3CEB<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-amends-the-tax-audit-report-form-3cd-itr-6-form-no-10-ie-and-10-if\/#Changes_in_ITR-6\" >Changes in ITR-6<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/cbdt-amends-the-tax-audit-report-form-3cd-itr-6-form-no-10-ie-and-10-if\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Highlights_of_the_Amendment\"><\/span>Highlights of the Amendment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>Income Tax<\/strong><\/a> dated on 1 Oct, 2020 issued the Income tax (22nd Amendment) Rules, 2020 to bring and notify changes in <strong>Form No 3CEB, Form 3CD, and ITR6<\/strong>. The amendment in <strong>Rule 5<\/strong> of Income Tax Rules, 1962 and have been inserted new Rules &amp; Forms which are:- <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"525\" height=\"452\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-26.png\" alt=\"Highlights of the Amendment\" class=\"wp-image-17539\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-26.png 525w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-26-300x258.png 300w\" sizes=\"(max-width: 525px) 100vw, 525px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendment_in_the_Rule_5_of_the_Income_Tax_Rules_1962\"><\/span>Amendment in the Rule 5 of the\nIncome Tax Rules, 1962<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Rule 5<\/strong>\nhas prescribed a computation of depreciation allowance under <strong>section\n32(1)(ii) <\/strong>in respect of any block of assets. Currently, the proviso to <strong>Rule\n5(1)<\/strong> has restricted the rate of <strong>depreciation to 40%<\/strong> on the written\ndown value of block of assets, in case a prescribed rate of depreciation is\nhigher than 40% for that block of assets for a purpose of claiming depreciation\nallowance under <strong>section 32(1)(ii)<\/strong> in case of the domestic company which\nhas exercised an option under <strong>section 115BA(4).<\/strong><\/p>\n\n\n\n<p>The proviso is amended and new proviso\nhas been substituted to include the new beneficial lower tax regime provisions\nunder <strong>section 115BAB, section 115BAA, section 115BAC and section 115BAD<\/strong>\napart from existing section 115BA to restrict a rate of depreciation to 40% for\nclaiming depreciation allowance under <strong>section 32(1)(ii).<\/strong> Hence, a person\nopts a lower tax regime under 115BAA, section 115BA, section 115BAB, section\n115BAC and section 115BAD cannot claim the depreciation allowance more than at\na rate of 40% for block of assets.<\/p>\n\n\n\n<ul><li>Section 115BAA, Section 115BA,\nand section 115BAB are applicable for the domestic company. Section 115BAA and\nsection 115BAB will be applicable from Assessment year 2020-21.<\/li><li>Section 115BAC will be\napplicable for an Individual and HUF whereas section 115BAD is applicable for\nthe co-operative society. Section 115BAD and section 115BAC is applicable from\nthe Assessment year 2021-22.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Insertion of new Rule 21AG<\/h3>\n\n\n\n<p><strong>Rule 21AG<\/strong> states that the Individual or <em><strong>HUF<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/HUF\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> must exercise an option of a lower tax regime under <strong>section 115BAC (5) in the Form No. 10-IE<\/strong> from Assessment year 2021-22. The option in <strong>Form No. 10-IE<\/strong> must be furnished electronically either under electronic verification code or digital signature. A Principal Director General of Income-tax Systems or the Director General of Income-tax Systems, must specify the procedure for the filing of the <strong>Form No. 10-IE<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Insertion of new Rule 21AH<\/h3>\n\n\n\n<p><strong>Rule 21AH<\/strong> states that the cooperative society resident in India must exercise an option of a lower tax regime under <strong>section 115BAD (5)<\/strong> <strong>in Form No. 10-IF<\/strong> from Assessment year 2021-22. The option in <strong>Form No. 10-IF<\/strong> must be furnished electronically either under the digital signature or electronic verification code. A Principal Director General of Income-tax Systems or the Director General of Income-tax Systems must specify a procedure for filing of <strong>Form No. 10-IF<\/strong>.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/tax-residency-certificate-and-how-to-get\/\">An overview on Tax Residency Certificate &amp; Double Taxation Avoidance Agreement: How To Get It?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Changes_in_Tax_Audit_Report_in_the_Form_No_3CD\"><\/span>Changes\nin Tax Audit Report in the Form No 3CD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Suitable changes must be made\nin <strong>Form No 3CD<\/strong> and the new serial 8a has been inserted to provide\ninformation on whether an assessee has opted for taxation under <strong>section\n115BA\/115BAB\/115BAA.<\/strong>Further an information is required has to be given for\nadjustment made to written down value under section 115BAA (for AY 2020-21\nonly) and the Adjusted written down value. For the purpose, <strong><em>serial 18(ca)\nand 18(cb)<\/em><\/strong> is inserted in a <strong>Part-B of Form No. 3CD.<\/strong><\/li><li>Details of brought forward for\nloss or depreciation allowance in <strong><em>serial no 32(a)<\/em><\/strong> in the Part-B\nof the Form No. 3CD is modified to incorporate an adjustment for losses and\nallowances under section 115BAA.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Changes_in_Tax_Audit_Report_in_the_Form_No_3CEB\"><\/span>Changes in Tax Audit Report in\nthe Form No 3CEB<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Changes have been made in serial no.\n22, 23 and 24 in Part-C of the Form 3CEB notified.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Format of Form 10-IE<\/h3>\n\n\n\n<p>This Notification has to insert Form\n10-IE in accordance with Rule 21AG pertaining to Application for a exercise of\noption under section 115BAC sub-section\n(5).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Format of Form 10-IF<\/h3>\n\n\n\n<p>Format of the Form 10-IF in accordance\nwith Rule 21AH &#8211; Application for exercise of option under section 115BAD\nsub-section (5) notified.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Changes_in_ITR-6\"><\/span>Changes in ITR-6<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Amendments in the Schedule &#8211; DPM\nof ITR-6 have made to incorporate the adjustments of depreciation amount under\nsection 115BAA.<\/li><li>Amendments in Schedule-CFL of\nITR-6 have made to incorporate an adjustment for losses and allowances under\nsection 115BAA.<\/li><li>Amendments in Schedule-UD of\nITR-6 have made to incorporate an adjustment for depreciation allowances for\nopting section 115BAA.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>CBDT has notified amendments in Tax Audit Report Form No. 3CEB, Form No. 3CD, and ITR-6. The Notification has brought amendment in the Rule 5 of the Income Tax Rules, 1962 and inserted 2 new Rules &#8211; <strong>Rule 21AG and Rule 21AH<\/strong> for exercising the concessional tax regime under section 115BAC(5) in the Form No. 10-IE and under section 115BAD(5) in the Form No- 10-IF respectively. New two Forms &#8211; Form No. 10-IE and Form No. 10-IF has also been inserted.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-income-tax-return-filing-without-form-16\/\">Income Tax Return Filing without Form 16<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/CENTRAL-BOARD-OF-DIRECT-TAXES.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">CENTRAL-BOARD-OF-DIRECT-TAXES<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This Notification has come into force on a date of publication in an Official Gazette which was on 1st Oct, 2020. If the ITR-6 or the Tax Audit Report in Form No. 3CD or Form No. 3CEB has been filed before that date then there is no need to revise the ITR-6 or the tax [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":17552,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,152],"tags":[1079],"acf":{"service_id":"50"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":5044,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17538"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=17538"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17538\/revisions"}],"predecessor-version":[{"id":23512,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17538\/revisions\/23512"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/17552"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=17538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=17538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=17538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}