In a tax audit under Section 44AB, Form 3CA or Form 3CB is the auditor's report and Form 3CD is the accompanying statement of particulars. Form 3CA applies where the accounts are already audited under another law; Form 3CB applies otherwise. Form 3CD is common to both.
How the forms fit together
Every tax audit produces two parts: a report (3CA or 3CB) in which the auditor gives the audit opinion, and a statement of particulars (3CD) containing detailed disclosures. The 3CD is filed with whichever report form applies.
3CA vs 3CB
| Form | When it applies |
|---|---|
| Form 3CA | Where the accounts are audited under another law (e.g. Companies Act audit of a company) |
| Form 3CB | Where the accounts are not required to be audited under any other law (e.g. a proprietorship/partnership not otherwise audited) |
So a company files 3CA (since it is audited under the Companies Act), while a non-corporate business audited only under the Income-tax Act files 3CB.
What Form 3CD covers
Form 3CD is a detailed statement with numerous clauses, including: nature of business, method of accounting, ICDS adjustments, depreciation, payments disallowed under 40A(3) and 43B, TDS compliance, loans and deposits (269SS/269T), and details of demands and refunds. It is the heart of the tax-audit disclosure.
Practical points
- The report and 3CD are filed by 30 September of the assessment year.
- Clause-wise working papers should support each 3CD disclosure.
- Mismatches between 3CD, the return and the financials invite queries.
- The taxpayer accepts the forms on the portal after the auditor uploads them.
Key takeaways
- 3CA/3CB = audit report; 3CD = statement of particulars.
- 3CA when audited under another law; 3CB otherwise.
- 3CD discloses ICDS, depreciation, disallowances, TDS, loans.
- Filed by 30 September; back every clause with working papers.