Form 3CD Clause Wizard — Tax Audit Checklist by Business Facts
Answer 15 yes/no questions about the business and get the Form 3CD clauses your audit actually needs — instead of copying last year's checklist and missing updated clauses.
Business facts — answer yes/no
Check every fact that applies. Relevant Form 3CD clauses appear on the right.
The wizard surfaces the clauses your facts trigger. Clauses whose trigger is not captured by these 15 questions appear under “Review for completeness” — do not ignore them.
How it works
Form 3CD runs to 44 clauses, but no single assessee answers all of them. The wizard maps 15 business facts (company status, related-party payments, cash spend, MSME suppliers, F&O, non-resident payments, transfer pricing, TDS defaults, ICDS, scientific research and more) to the clauses they trigger. Clauses marked crimson are always required for every tax audit under s.44AB; amber clauses appear only when your facts trigger them. A third group — clauses whose trigger the questions don't capture — is always shown under “Review for completeness” so nothing is silently missed.
The list is a pre-filing triage, not a substitute for reading the full form. The auditor must still verify figures against books and confirm the current CBDT version of Form 3CD before signing.
FAQs
How many clauses are in Form 3CD?
Form 3CD has 44 clauses (including sub-clauses) under Rule 6G IT Rules 1962. Clauses 28, 29 and 36 are omitted in the current notified form. Not all remaining clauses apply to every assessee — this wizard identifies the relevant clauses based on your business facts.
How is MSME 43B(h) reported in Form 3CD?
The s.43B(h) MSME disallowance (Finance Act 2023, effective AY 2024-25) is reported within Clause 26, which covers all s.43B items. If payments to Udyam-registered MSME suppliers were not made within 45 days (or 15 days if there is no written agreement), the outstanding amount is disallowed in the year of accrual and allowed only in the year of actual payment.
Who signs Form 3CD?
The CA conducting the tax audit u/s 44AB signs Form 3CD using their UDIN-linked digital signature. The UDIN must be generated on the ICAI portal before submission.
What are ICDS and why does Clause 13 matter?
Income Computation Disclosure Standards (10 ICDS notified u/s 145(2)) mandate specific accounting treatment for revenue, FOREX, construction contracts, etc. Clause 13 requires disclosure of deviations from ICDS and their P&L impact.
Is Clause 44 (GST breakup) mandatory?
Yes — CBDT Notification 36/2019 made Clause 44 (expenditure breakup by GST registration status of suppliers) mandatory from AY 2019-20.
Does this wizard replace the Form 3CD checklist?
No — it is a pre-filing triage. It surfaces the clauses your facts trigger. The auditor must still read the full form, verify figures against books, and confirm the current CBDT version before signing.
Hub Guide · TDS Compliance
Go deeper — the TDS Compliance hub
Form 3CD Clause 34 (TDS default) and Clause 36 (expenses without TDS deduction) — the hub covers s.194 rates, 24Q/26Q due dates, TRACES reconciliation, and s.234E penalties — statute-cited.