« Top Headlines » Open DEMAT Account in 24 hrs  Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25  Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals   Income Tax Return: 5 lesser-known tax-saving tips from Section 80 «  Tax management, the Infosys way... New Form 3CD - FBT Report with changes highlighted... » Format specified for certifying fringe benefit value August, 14th 2006 The Finance Ministry has specified the format in which tax auditors would be required to certify the value of fringe benefits accounted in the financial statements of companies that are under mandatory tax audit. For this purpose, the Central Board of Direct Taxes (CBDT) has revised the existing Form 3CD after due consultations with the Institute of Chartered Accountants of India (ICAI). The Finance Minister, Mr P. Chidambaram, had last year said that the tax department would go by the fringe benefit value certified by the tax auditor (chartered accountant) for the purpose of FBT assessment of entities under tax audit. For businesses with less than Rs 40 lakh turnover, fringe benefit valuation would be on a self-certification basis. The income-tax law requires companies with annual turnover of over Rs 40 lakh and professionals with annual receipt of over Rs 10 lakh to get their books audited for tax purposes. Form 3CD Tax auditors have to give their tax audit report in Form 3CD, which is annexed with income tax return of the company under tax audit. "Apart from the onerous responsibility that has now been put on chartered accountants in the area of tax deducted at source (TDS), the Government has accepted most of our suggestions on changes in Form 3CD," said Mr T.N. Manoharan, ICAI President. So far, chartered accountants were required to highlight in their report the cases where tax was deducted, but remitted to the Government beyond the due date. After the latest changes, tax auditors have to bring to the notice of the tax department 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. More disclosures The CBDT has also stipulated more disclosures under Form 3CD on transactions where the capital asset is converted into stock in trade. "When capital goods is converted into stock-in-trade, there is a change in the character of the asset. The tax department has sought more information, as it wants to monitor the sale of such assets and the tax incidence. Capital gains tax arises only in the year in which the stock-in-trade is sold," Mr Manoharan said.