Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What it covers
Accounting method, depreciation, payments disallowed for TDS/cash, statutory dues, loans/deposits (269SS/269T), and GST turnover, among 40+ clauses.
Why accuracy matters
3CD disclosures are cross-checked in assessments, so mismatches with GST/TDS data invite notices.
Clauses that draw scrutiny
Some 3CD clauses matter more than others because the department data-matches them. Clause 44 requires a break-up of expenditure by GST-registered and unregistered suppliers; the turnover reported must agree with your GST returns; TDS particulars are checked against your TDS statements and Form 26AS; and disallowances under 40(a), 43B and 40A(3) feed straight into your taxable income. Reporting of loans and deposits accepted or repaid in cash (Sections 269SS and 269T) can itself trigger separate penalties. Because mismatches between 3CD, GST and TDS data are a frequent reason for notices, reconciling these before the report is signed is time well spent. The clauses on payments to related parties, prior-period items and amounts inadmissible under various sections also draw attention, so support each figure with a clear working the auditor can rely on.