Clause wise discussion on form 3CD Clause 15 (a) and (b)

[Tax Audit Report]

Amounts admissible under sections –

(a) 33AB
(b) 33ABA
(c) 33AC (wherever applicable)
(d) 35
(e) 35ABB
(f) 35AC
(g) 35CCA
(h) 35CCB
(i) 35D
(j) 35DD
(k) 35DDA
(l) 35E

(a) debited to the profit & loss account (showing the amount debited and deduction allowable under each section separately)

(b) not debited to the profit and loss account.

[Clause 15 (a) and (b)]

[Tax Audit Report]

The assessee can claim deduction under the following sections subject to the terms and conditions mentioned in these sections.

i) Section 33AB: Tea Development Account

ii) Section 33ABA: Site Restoration Fund

iii) Section 33AC: Reserve for Shipping Business

iv) Section 35 : Expenditure on Scientific Research

v) Section 35ABB: Expenditure for obtaining licence to operate telecom services

vi) Section 35AC: Expenditure on eligible projects/schemes

vii) Section 35CCA: Expenditure by way of payments to associations and institutions for carrying out rural development programmes.

viii) Section 35CCB: Expenditure by way of payments to associations and institutions for carrying out programmes of conservation of natural resources.

ix) Section 35D: Amortisation of certain preliminary expenses

x) Section 35DD: Amortisation of expenditure in case of amalgamation or demerger

x) section 35DDA: Amortisation of expenditure incurred under voluntary retirement scheme

x) Section 35E: Deduction for expenditure on prospecting etc. for certain minerals

In case the assessee has obtained a separate audit report for claiming deductions under any of these sections, he must make a reference to that report while giving the details under this clause.

[Tax Audit Report]

The tax auditor should indicate the amount debited in the profit and loss account and the amount actually admissible in accordance with the concerned provisions of law.

[Tax Audit Report]

The amount not debited to the profit and loss account but admissible under any of the sections mentioned in the clause have to be stated. Sections 33AB and 33ABA allow deduction in respect of amount deposited in designated account for specified purposes which, as per accounting principles, are not to be debited to the profit and loss account. In this connection, the tax auditor has to work out, on the basis of the conditions prescribed in the concerned section, the amount admissible thereunder and report the same.

[Tax Audit Report]

Where the assessee is eligible for deduction under one or more of the above sections, the tax auditor has to state the deduction allowable under each section separately.

[Tax Audit Report]

In many cases, capital expenditure may have been incurred which is allowable as deduction while computing the profits and gains of the assessee under these heads and such expenditure may have been capitalised and shown as fixed assets in the books. The tax auditor should ascertain such expenditure and state the same under sub-clause (b).