The CBDT notified changes to the Form 3CD vide Notification No. 27/2024 /F. No. 370142/3/2024-TPL, dated 05-03-2024. The changes duly include disclosure of section 43B(h) disallowance under clause 26. However, Clause 22, pertaining to interest restrictions under the MSME Development Act, was not amended. Now, said clause is amended to include disclosure of the amount disallowed under section 43B(h).
The Central Board of Direct Taxes (CBDT) has recently issued a corrigendum to amend the tax audit report Form 3CD, specifically including a new provision under section 43B(h). This addition mandates the reporting of certain disallowances under clause 22 of Form 3CD. The implication of this update is significant for taxpayers, as it necessitates the disclosure of expenses or payments that are not eligible for deduction due to non-compliance with specific conditions stipulated under section 43B of the Income Tax Act. This move aims to enhance transparency and compliance in tax reporting, ensuring that deductions claimed by businesses adhere strictly to the provisions of the tax laws- JSPCO
