Sl.

No.

Clause

OLD CLAUSE

NEW CLAUSE

REMARKS

01.

7 (b)

If there is any change in the partners/members or their profit sharing ratio, the particulars of such change

If there is any change in the partners or members or in their profit sharing ratio, since the last date of the preceding year, the particulars of such change.

If there is any such change since the last date of the preceding year must be stated. All the changes occurring during the entire previous year must be stated.

02.

8 (a)

Nature of business or profession

Nature of business or profession (if more than one business or profession is carried on during the previous year, nature of every business or profession)

All lines of business or profession must be stated irrespective of volume / nature of business or profession. Even business or profession closed at the end of the year is required to be stated.

03.

12 A

(New)

        ---

Give the following particulars of the capital asset converted into stock-in-trade:-

a)      Description of capital asset.

b)      Date of acquisition.

c)      Cost of acquisition

d)      Amount at which the asset is converted into stock-in-trade.

If he capital asset converted into stock in trade is required to be stated and vice versa not required.

04.

13 (b)

The proforma credits, drawbacks, refunds of duty of customs or excise, or refunds of sales tax, where such credits, drawbacks or refunds are admitted as due by the authorities concerned;

The proforma credits, drawbacks, refund of duty of customs or excise or service tax, or refund of sales tax or value added tax where such credits, drawbacks or refunds are admitted as due by the authorities concerned;

Now service tax & VAT is to be stated when they are admitted as due by the authorities concerned.

05.

15

Amounts admissible under sections 33AB, 33ABA, 33AC, 35, 35ABB, 35AC, 35CCA, 35CCB, 35 D, 35E :-

Amounts admissible under sections 33AB, 33ABA, 33AC(wherever applicable), 35, 35ABB, 35AC, 35CCA, 35CCB, 35D, 35DD, 35DDA, 35E

The Finance Act, 1999 has inserted section 35DD w.e.f. A.Y. 2000-01 providing for amortisation of expenditure in case of amalgamation or demerger and the Finance Act, 2001 has inserted section 35DDA w.e.f. A.Y. 2001-02 providing for amortization of expenditure incurred under Voluntary Retirement Scheme. Now the amounts admissible under the above section are to be stated.

06

17 (h)

Amount inadmissible under section 40 A(3) read with rule 6DD and computation thereof.

(A) Whether a certificate has been obtained from the assessee regarding payments relating to any expenditure covered under section 40 A(3) that the payments were made by account payee cheques drawn on bank or account payee bank draft, as the case may be ,        (YES /NO)

(B) amount inadmissible under section 40(A)(3), read with rule 6DD (with break-up of inadmissible amounts)

A separate certificate is required to be obtained from the assessee as specified in the clause. It is not clear whether such certificate is to be attached with the tax audit report or not.

No format is prescribed for certificate to be obtained from assessee.

07

17 (l)

(New)

            ----

amount of  deduction inadmissible in terms of Section 14A in respect of the expenditure incurred in relation to income which does not form part of the total income.

The burden has shifted to tax auditor for determining the amount of deduction inadmissible in terms of Section 14 A. In the absence of specific method it is very difficult for tax auditor to determine the amount of deduction inadmissible under section 14A.

08.

17 (m)

(New)

            ---

amount inadmissible under the proviso to Section 36 (1)(iii)

The burden has shifted to the tax auditor for determining the inadmissible amount of interest paid in respect of capital borrowed for the purposes of the business or profession. It is very difficult to determine the inadmissible amount under this section.

09.

21 (i)

In respect of any sum referred in clause (a) (c) (d)  or (e) of Section 43 B

In respect of any sum referred in clause (a) ,(b), (c), (d), (e) or (f) of Section 43 B

Clause 21 (b)(ii) has been omitted.

Any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee  shall be allowed on actual payment basis.

11.

24 (c)

(New)

            ---

Whether a certificate has been obtained from the assessee regarding taking or accepting loan or deposit, or repayment of the same through an account payee cheque or an account payee bank draft -  (YES / NO)

The particulars (i) to (iv)  at (b) and the Certificate at (c) above need not be given in the case of a repayment of any loan or deposit taken or accepted from Government, Government Company, banking company or a corporation established by a Central, State or Provincial Act.

A Clarification is required whether such certificate obtained from the assessee is required to be attached along with tax audit report or not.

No format is prescribed for certificate to be obtained from assessee

12.

25 (b)

(New)

            ---

Whether a change in shareholding of the company has taken place in the previous year due to which the losses incurred prior to the previous year cannot be allowed to be carried forward in terms of Section 79.

The tax auditor has to verify whether any change in shareholding has taken place in the previous year and report the same accordingly.

13.

27 (a) (b)

a) Whether the assessee has deducted tax at source and paid the amount so deducted to the credit of the Central Government in accordance with the provisions of  Chapter XVII-B

b) If the answer to (a) above is in negative, then give the following details.

1.Serial No.

2. Particulars of head under which tax is deducted at source.

3. Amount of tax deducted at source.(in Rs.)

4.Due date for remittance to Government.

5. Details of payment Date/ Amount (in Rs.)

6. Remarks

a) Whether the assessee has complied with the provisions of Chapter XVII-B regarding deduction of tax at source and regarding, the payment thereof to the credit of Central Government.  (YES / NO)

b) If the provisions of Chapter XVII-B have not been complied with, please give the following details*, namely:-

(i) Tax deductible and not deducted at all

(ii) Shortfall on account of lesser deduction than required to be deducted.

(iii) tax deducted late)

(iv) tax deducted but not paid to the credit of the Central Government

"Please give the details of cases covered in (i) to (iv) above";

The tax auditors have to report the instances where tax is deductible and not deducted at all, short fall on account of lesser deduction than required to be deducted, tax deducted late and tax deducted, but not paid to the Government. The responsibility of the auditor has been increased than the previous reporting system where the auditor is not expected to verify whether the tax deductible has been properly deducted or not. Now, the tax auditor has to certify   whether the assessee has complied with the provisions of Chapter XVII-B regarding deduction of tax at source

Annexure

Annexure - I

14.

Part B

Nature of Business

Part B

Nature of business or profession (if more than one business or profession is carried on during the previous year, nature of every business or profession)

All lines of business or profession must be stated irrespective of volume / nature of business or profession. Even business or profession closed at the end of the year is required to be stated.

15

SL No.1

Paid-up share capital

Paid-up share capital / Capital of partner / proprietor

Now it is clear to  report cases other than corporates.

16

SL No.2

Share Application Money

Share Application Money/ Current Account of Partner or Proprietor, if any,

Now it is clear to  report cases other than corporates.

17

SL No.3

Reserves & Surplus

Reserves and Surplus / Profit and Loss Account.

It is now require to state the amount standing in Profit and Loss Account also.

18

SL. No.8

Gross Turnover

Gross Turnover / Gross Receipts

Now the clause clearly applicable to non-business cases also.

19

SL No. 15

Net Profit (or loss) before tax

Net Profit (or loss) before tax as per Profit and Loss Account.

Now it is clear the net profit or loss before tax as per P & L and not as per Computation of total income.

20.

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ANNEXURE -II

Value of Fringe Benefits in Terms of Section 115 WC Read with Section 115 WB for the assessment year ________

A detailed statement annexed thereto.