1. SPECIFIC CLAUSE ANALYSIS
Form 3CD
SPECIFIC CLAUSE ANALYSIS

2. When is 3CD required to be prepared? Clauses Covered under Part A
Introduction +
When is 3CD required to be prepared?
Clauses Covered under Part A
Clauses Covered under Part B

3. When is 3CD required to be prepared ?
3CD is prescribed under Rule 6G(2) of the Income Tax Act, There are total 32 clauses. 3CD is to be prepared and attached with the copy of audited accounts along with 3CA or 3CB as applicable under section 44AB of the Income Tax Act,1961.
Section 44AB is plainly read as follows:
“ Every person:
Carrying on business shall , if his income or gross receipts exceed in business exceeds Rs. 1 Crore in the previous year
Carrying on profession ,shall if his gross receipts in profession exceeds Rs. 25 Lakh or
Carrying on business if his profits and gains from business are covered u/s 44AE or 44BB or 44BBB and has claims his profits to be lower than profits or gains computed on presumptive basis as per these sections(i.e.
Any eligible assessee (i.e. individual, HUF & firm except companies and LLP )covered u/s 44AD(i.e. their profits and gains from any business except not covered u/s 44AE and are not more than the taxable limit and his income is not lower than 8% of gross receipts” F

4. Section 44AD
Section 44AD:
It covers all the small businesses having turnover less than Rs. 1 crore.
Only individuals, HUF and firms are covered here .
This scheme would not apply to assessee who avails any deduction under Chapter VIA .
Presumptive tax rate would 8% of total turnover or gross receipts,
All deductions under sections 30 to 38 would have been deemed to be allowed but interest and remuneration u/s 40(b) can be claimed.
Presumptive tax rate would be 8% of the gross turnover or receipts , however the assessee has the option to declare more income
No need to pay advance taxes.

5. Clauses covered under Part 1
Clause 1 to 6 is covered under Part A of 3CD
PART - A 1
Name of the Assessee
 (If there is change in the name of the assessee , a copy of certificate relating to the same should be furnished) 2
Address
In case of companies mention the registered office address and also address should be the same as communicated by the assessee to the income tax department for assessment purpose 3
Permanent Account Number 4
Status
 As per section 2(31) of income tax act, 1961 5
Previous year ended
31 ST MARCH, 2013 6
Assessment year

6. Clause 7
Clause 7(a)
“ If Firm or Association of Persons, indicate names of partners/members and their profit sharing ratios.”
Points to be kept in mind:
Change in constitution has to determined in accordance with section 187 which applies only in the case of retiring or death of partner .
The details of partners or members during the entire previous year will have to be furnished. A copy of changed and registered deed should be verified
The term "profit sharing ratios" would include loss-sharing ratio also since loss is nothing but negative profits.
If shares of members of AOP are indeterminate , this fact should be mentioned.

7. Clause 7
Clause 7(b)
“If there is any change in the partners or members or in their profit sharing ratio since the last date of the preceding year, the particulars of such change.'‘
Points to be kept in mind:
If there is any change in the partners of the firm or members of the association of persons or their profit or loss sharing ratio, since the last date of preceding year, the particulars of such change must be stated.
All the changes occurring during the entire previous year must be stated because it has direct relation with section 78 as per which unabsorbed losses of the retiring partner can be carried forward only to the extent that it does not exceed such parter’s share in the profit now.
The particulars in this clause should be verified from the instrument or agreement or any other document evidencing partnership or association of persons including any supplementary documents or other documents effecting such changes.
Penalty is leviable u/s 271(4) , where profits are distributed not in accordance with the partnership deed and the partner has not disclosed his correct income.(penalty minimum as per AO or maximum 150% of tax on income less tax on returned income.

8. Clause 8 Clause 8(a) Clause 8(b) Points to be kept in mind:
“Nature of business or profession (if more than one business or profession is carried on during the previous year, nature of every business or profession)“
Points to be kept in mind:
Part B of Annexure I should be referred for this purpose.
Clause 8(b)
“If there is any change in the nature of business or profession, the particulars of such change.”
Any material change in the nature of business should be precisely set out.
Temporary Suspension of business is not change in business.
The change will include change from manufacturer to trader as well as change in the principal line of business.

9. Clause 11
Clause 11(d)
“Details of deviation, if any, in the method of accounting employed in the previous year from accounting standards prescribed under Section 145 and the effect thereof on the profit or loss “
Points to be kept in mind:
All 32 Accounting Standards as notified by the institute are to be followed as per the applicability prescribed under each standard.
But Central government have prescribed only two major accounting standards till date as per section 145(2) for persons following mercantile system of accounting mainly:
1. AS(IT) 1 – Disclosure of accounting policies.
2. AS(IT) 2 – Disclosure prior period items and extraordinary items and changes in accounting policies.
We generally report this issue in “Notes to accounts”.

10. Clause 12
Clause 12(a)
“Method of valuation of closing stock employed in the previous year.”
Points to be kept in mind:
Valuation of inventory has a direct effect on the profit or losses.
Appropriateness of valuation method used is to be determined on the basis of AS- 2 “ Valuation of Inventories”, which is inventories are to be valued at Cost or NRV whichever is lower. If not , then qualify the opinion as to true and fairness in Form. 3CB.
Cost should be calculated as per FIFO, Weighted average or Absorption costing and should include all the costs incurred to bring the inventories to their present location and conversion. Direct cost method is not permitted.
Change in valuation and valuation method used for each item of stock is to be reported under “ Notes to Account”

11. Clause 12
Clause 12(b)
“Details of deviation, if any, from the method of valuation prescribed under Section 145A, and the effect thereof on the profit or loss”
Points to be kept in mind:
As per section 145A, Inclusive method of accounting for recording sales, purchase and inventory is to be followed , which means that all taxes or cess (excise and vat) actually paid or incurred by the assessee to bring the goods to its present place and condition are to be included in the figure of sales or purchase.
But if inclusive method is used then it will violate AS-2 “Valuation of Inventories”.
Even if inclusive or exclusive method is used the effect on accounts will generally remain NIL.A reconciliation in respect to this is to be attached with it. Merely giving a note is not enough.
Cross check the amount of Cenvat credit in respect of excise duty excluded from purchase with data furnished in clause 22(a).

12. Clause 13 Clause 13 “the items falling within the scope of Section 28”
“Amounts not credited to the profit and loss account, being”
Clause 13(a)
“the items falling within the scope of Section 28”
Points to be kept in mind:
Section 28 is to be referred for this purpose which is the main charging section for “Profits and gains from business or profession”
Check the capital account of the assessee to ascertain if any receipt has been directly credited to capital account.
Examine bank statements and cash books.
Ensure that AS- 9 for revenue recognition which excludes has been followed.

13. Clause 13
Clause 13(b)
“the pro forma credits, drawbacks, refund of duty of customs or excise or service tax, or refund of sales tax or value added tax , where such credits, drawbacks or refunds are admitted as due by the authorities concerned;”
Points to be kept in mind:
(a) Proforma credits
(b) Drawback
(c) Refund of duty of custom
(d) Refund of excise duty
(e) Refund of sales tax
(f) Refund of Vat
(g) Refund of Service tax
If refund amount is netted off against expenditure instead of being credited to profit and loss account it should be disclosed here.

14. Clause 13 Clause 13(d) Clause 13(e) “any other item of income”
Points to be kept in mind:
Income other section 28 would be covered here, for eg. If violation of section 40A(3) has been made then such amount would be treated as income and reflected here.
Clause 13(e)
“capital receipt, if any”
The purpose of this clause is to enable the ITD to scrutinize the receipts and not all capital receipts are liable to income tax , like capital receipt on sale of an asset is to be reported here . Section 37 should be referred for distinguishing between capital and revenue receipt.

15. Clause 14 Clause 14 Description of asset/block of assets.
“Particulars of depreciation allowable as per the Income tax Act, 1961 in respect of each asset or block of assets, as the case may be, in the following form :”
Description of asset/block of assets.
Rate of depreciation.
Actual cost or written down value, as the case may be.
Additions/deductions during the year with dates; in the case of any addition of an asset, date put to use ; including adjustments on account of -
(i) Modified Value Added Tax credit∗ claimed and allowed under the Central Excise Rules, 1944, in respect of assets acquired on or after 1st March, 1994,  
(ii) Change in rate of exchange of currency, and  
(iii) Subsidy or grant or reimbursement, by whatever name called.
(e) Depreciation allowable.
(f) Written down value at the end of the year.

16. Clause 14
Section 32 allows a deduction in respect of depreciation on capital assets.
Conditions for claiming the depreciation are:
The assets should be put to use by the assessee for business purpose.
Half depreciation can be claimed if asset is used for less then 180 days.
Land and personal assets do not qualify for any depreciation.
Assessee must own(not compulsory to be legal owner) it lays stress on control the assets wholly or partly(lease).
Depreciation is compulsory to be claimed by the assessee.

17. Clause 14
Section 2(11) defines block of asset as:
Group of assets comprising of same % of depreciation has been prescribed,(WDV)
Tangible assets, being building, machinery , plant or furniture.
Intangible assets.
Asset loses its identity after falling in block
Section 32(i)(iia) for additional depreciation as:
Any assessee who is engaged in the business of production or manufacture
Any new manufacturing machine not including any office appliances road transport vehicle, any machinery installed in office premises or residential accommodation.
Rate will be 20% , if used for less than 180 days then 10%.

18. Clause 14 Section 43(1) defines actual cost means:
“ Cost of assets as reduced by that portion of cost that has been directly or indirectly met by any other person or authority”
Actual cost comprises of interest on capital borrowed for acquiring the asset upto commencement of commercial production and all the expenses incurred to bring the asset to its current location, position and working condition.
Rates of depreciation have been prescribed in rule 5(1) and is divided into four main blocks.
Cenvat credit on capital goods is allowed for payment of service tax and excise , then that portion of cenvat credit is deducted from the actual cost of asset.

19. Clause 14 Thus depreciation is to be calculated as : Particulars
Amount
Opening WDV
XXX
Add: Additions
Less: Actual money received in respect of asset sold or discarded
Less : Current year depreciation
Closing WDV

20. Clause 16 b Points to be noted : Section 2(24)(x)
Any sum received from employees towards contributions to any provident fund or superannuation fund or any other fund mentioned in Section 2(24)(x); and due date for payment and the actual date of payment to the concerned authorities under Section 36(l) (va).
Points to be noted :
Section 2(24)(x)
The term income shall include any sum received by employee towards :
a Provident Fund
b Superannuation fund
c Any fund set up under employees state insurance act
d Any other fund set up for welfare of the employees
Section 36(1)(va) provides for deduction from total income if such sums are credited by assessee to the employees account to the relevant fund on or before the due date under any relevant act and if any grace period is allowed under any act then it shall be deemed that the same has been paid within due date
Section 36(1)(va) applies to deduction of employees contribution and section 43B applies to employers deduction

21. Clause 17(a)
Amounts debited to the profit and loss account, being:
Expenditure of capital nature;
Points to be noted :
Section 37 is to be considered for this purpose , Section 37 (1) applies to all deductions not allowed under section and section 37(1) shall not be allowed as deduction in computing PGBP
No definition of capital expenditure in the act
As-10 “Accounting for Fixed Assets” can be referred which in simple language states that “cost of fixed comprises of its purchase price and any cost incurred to bring the asset to it present location and condition”
Capital expenditure should result into economic benefit of enduring nature which differs in situation to situation basis.

22. Clause 17(b) Amounts debited to the profit and loss account, being:
“Expenditure of personal nature; “
Points to be noted :
Personal expenses are not deductible under section 37.
The word personal is confined to assessee only. Personal expenditure of employees under contractual or as business practice is accepted
Documentation is generally required for this purpose and proof that it is not carried in violation of company’s policies.

23. Clause 17(e)
(i) expenditure by way of penalty or fine for violation of any law for the time being in force;
(ii) any other penalty or fine;
(iii) expenditure incurred for any purpose which is an offence or which is prohibited by law;
Points to be noted :
This clause covers only penalty or fine and not the payment for contractual breach or for redressal of contractual wrongs.
Explanation to section 37 specifically states any expenditure incurred for any purpose which is an offence or which is prohibited by law is not deductible , only compounding penalty (i.e. incurred for the purpose of saving the assessee from the consequences of these expenditure is allowed.)

24. Clause 17(F) Amounts inadmissible under section 40(a);
Section 40(a) covers the following:
Any interest, royalty, fees for technical services or other sum chargeable under the Income tax Act, which is payable outside India or in India to a non resident, not being a company or to a foreign company on which tax has not been deducted or after deduction has not been paid before the expiry of the time prescribes under section 200(1) and in accordance with other provisions of Chapter XVII B.
Any interest, commission or brokerage, fees for professional services or fees for technical services payable to a resident or amounts payable to a contractor or sub-contractor, being resident for carrying out any work (including supply or labour for carrying out any work) on which tax is deductible under Chapter XVII-B and such tax has not been deducted or after deduction has not been paid during the previous year or in the subsequent year before the expiry of the time prescribed under sub-section (1) of section 200.
Any sum paid on account of securities transaction tax.
Any sum paid on account of fringe benefit tax.
Any sum paid on account of any rate or tax levied on the profits or gains of any business or profession or assessed at a proportion of, or otherwise on the basis of, any such profits or gains.
Any sum paid on account of wealth tax.
Any payment which is chargeable under the head “salaries”, if it is payable outside India or to a non resident and if the tax has not been paid thereon nor deducted there from under Chapter XVII-B.

25. Clause 17(G)
Interest, salary, bonus, commission or remuneration inadmissible under Section 40(b)/40(ba) and computation thereof;
Section 40(b) is as follows:
Sec.40(b) spells out the conditions for claiming deduction of remuneration of partners . These are:
It should be paid only to working partners.
It must be authorized by the partnership deed.
It should not pertain to a period prior to partnership deed.
It should not exceed the prescribed limit.
Interest should be calculated on the net credit balance standing in the account of
Partner generally monthly.

26. Clause 17(G)
Sec.40(b) spells out the conditions for claiming deduction of interest paid to partners on capital. These are:
The payment should be authorized by the partnership deed.
The payment should pertain to a period after the partnership deed.
Rate of interest should not exceed 12 per cent.
And also section 184 should be satisfied
Partnership deed should be in written form
Shares of partner should be specified in the deed
Copy of revised deed if there is any change in constitution of partnership should be given.
Section 40 (ba)
It is related to to AOP’s and BOI’s , as per this section any interest
,bonus, remuneration ,salary, or commission paid by them to their members is
Not allowed as deduction

27. Clause 17(H)
(i) Whether a certificate has been obtained from the assessee regarding payments relating to any expenditure covered under Section 40A(3) that the payments were made by account payee cheques drawn on a bank or account payee bank draft, as the case may be; [Yes/No]
(ii) amount inadmissible under Section 40A(3), read with rule 6DD [with break-up of inadmissible amounts];
Provisions of section 40A (3) have three limbs.
1 The assessee incurs an expenditure which is otherwise deductible. The amount of the expenditure exceeds Rs. 20,000. The payment in respect of the above expenditure (or part thereof) exceeds Rs. 20,000. The payment is made otherwise than by an account payee cheque or an account payee demand draft. In this case the no deduction would be allowed in respect of such expenditure.
2 Where the assessee claims the expenditure on the basis of the principle of accrual and in the subsequent year he makes payment of such expenditure otherwise than by account payee cheque or account payee demand draft, such payment shall be deemed to be the profits and gains chargeable to tax if the payment exceed Rs. 20,000.
3 No disallowance would be made in the said cases in respect of cases prescribed under rule 6DD.
4 Payment made to any transporter more then Rs for plying, hiring and leasing in a day is covered
Any amount not deductible under this section if debited to profit and loss account it has to be reported.

28. Clause 17(I)
“ Amount of deduction in admissible in terms of section 14A in respect of the expenditure incurred in relation to income which does not form part of total income’’
Points to be noted:
Section 14 refers to the fact that for the purpose of computing assessee’s total income , no deduction shall be allowed in respect to the expenditure incurred by the assessee in related to the income which does not form the part of the income.
If the assessing officer is not satisfied then he shall calculate the income as prescribed under rule 8D:

29. Clause 17(I)
The amount of expenditure directly relating to income not forming part of total income.
In a case where assessee has incurred expenditure by way of interest which is not attributable to any particular income or receipt , an amount computed in accordance of the following formula will be disallowed:
Interest exp. Other then the one mentioned x Average value of investment income from which does not form part of income / Average value of total assets in balance as appearing on the first and the last day of the previous year
3. An amount equal to the one and a half percent of the amount of investment, income from which does not form the part of the total income.

30. Clause 18
Particulars of payments made to persons specified under Section 40A(2)(b)
Section 40A(2)(b) :
Applies only with regards to expenditure covered under section 30 to 37 (including purchase) made from specified person having substantial interest in business i.e. having at 20% equity shares in case of company or 20 % profits at any time during the year and also relative of such person is also covered.
Relative as defined under section 2(41) includes spouse, brother , sister or any lineal ascendant or descendant.
The auditor has to mainly list out the particulars of payments made and there is no need to comment on its unreason ability or excessiveness but for assessment purpose and in compliance with auditing standards it should be legitimate needs and benefit derived and fair market value should be verified because excess payment may be disallowed by the AO and also the onus to prove it is on the AO for proving it.
Interest paid to partners of the firm and remuneration paid to partners of firm and directors of company is also included here.
Payment here means “total amount of expenditure”

31. Clause 21
In respect of any sum referred to in clause (a), (b),(c), (d), (e) or (f) of section 43B, the liability for which:
(A) pre-existed on the first day of the previous year but was not allowed in the assessment of any preceding previous year and was
(a) paid during the previous year;
(b) not paid during the previous year;  
(B) was incurred in the previous year and was
(a) paid on or before the due date for furnishing the return of income of the previous year under Section 139(1);
(b) not paid on or before the aforesaid date.

32. Clause 21
In respect of any sum referred to in clause (a), (b),(c), (d), (e) or (f) of section 43B, the liability for which:
(A) pre-existed on the first day of the previous year but was not allowed in the assessment of any preceding previous year and was
(a) paid during the previous year;
(b) not paid during the previous year;  
(B) was incurred in the previous year and was
(a) paid on or before the due date for furnishing the return of income of the previous year under Section 139(1);
(b) not paid on or before the aforesaid date.
► First proviso to section 43B provides that nothing contained in this section shall apply in relation to any sum which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under section 139(1) in respect of previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return.
► The above particulars are required irrespective of the fact whether they have been debited to profit and loss account or not and such a fact should be stated under this clause.

33. Clause 21
Section 43B states that:
the following amounts shall be allowed as deduction in computing the business income of an assessee in the previous year in which such amounts are actually paid:
Any tax, duty (sales tax, excise duty, municipal tax, etc.), cess or fee payable by the assessee under any law for the time being in force.
Employer’s contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees.
Any bonus or commission payable by the assessee to its employees.
Interest on any loan or borrowing from any public financial institution, a state financial corporation or a state industrial investment corporation payable in accordance with the terms and conditions of the agreement governing such loan or borrowing.
Any sum payable by the assessee as interest on any loan or advances from a scheduled bank in accordance with the terms and conditions of the agreement governing such loan or advances.
Any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee.

34. Clause 22(a)
Amount of Modified Value Added Tax∗ credits availed of or utilized during the previous year and its treatment in the profit and loss account and treatment of outstanding Modified Value Added Tax credits in the accounts.
Points to be noted:
We should check relevant statutory records viz. RG-23 register maintained under the Central Excise Rules and ascertain the amount of credit on inputs availed and utilized during the previous year.
He should verify that there is RG-23 proper reconciliation between balance of MODVAT credits in the accounts and register.
In so far as the reporting of accounting treatment of MODVAT credit is concerned the clause requires that its treatment in profit and loss account and the treatment of outstanding MODVAT credit in the account have to be reported upon. And also it tallies with the information furnished in clause 12(b)

35. Clause 22(B) Points to be noted:
Particulars of income or expenditure of prior period credited or debited to the profit and loss account.
Points to be noted:
The particulars of expenditure or income of any earlier year debited or credited to the profit and loss account of the relevant previous year when mercantile system of accounting is followed.
AS 5 and AS (IT) – II comes into play here.
Expenditure or income of previous year which crystallized during the current period are not prior period items.
Sales return of prior to previous year are received now are not covered as prior period items.

36. Clause 24(a)
Particulars of each loan or deposit in an amount exceeding the limit specified in Section 269SS taken or accepted during the previous year
(i) name, address and permanent account number (if available with the assessee) of the lender or depositor;
(ii) amount of loan or deposit taken or accepted;
(iii) whether the loan or deposit was squared up during the previous year;
(iv) maximum amount outstanding in the account at any time during the previous year;
(v) whether the loan or deposit was taken or accepted otherwise than by an account payee cheque or an account payee bank draft.
∗ (These particulars need not be given in the case of a Government company, a banking company or a corporation established by a Central, State or Provincial Act.)

37. Clause 24(a) Section 269SS states that:
The aggregate amount of loan or deposit taken by or amount of loan standing unpaid by the assessee other than by a account payee cheque or draft is Rs or more then details of loan or deposit from a person other than a Government company, a banking company or post office or a cooperative bank or a corporation established by a Central, State or Provincial Act. shall be covered by this clause.
Capital contribution by partners shall not be covered here.
If it is done through RTGS or NEFT than specific note is to be given.
Transfer of partner’s loan into capital contribution would be covered here.
Renewal of deposits is not covered here.
When deposits are made by contractors for some period and this money is refunded to him after expiry period it will be covered here.
When transactions in the current account exceed Rs , it is necessary to give the information in this clause.
Penalty u/s 271D is leviable equal to amount of loan or deposit taken for failure to comply with this section.

38. Clause 24(B)
Particulars of each repayment of loan or deposit in an amount exceeding the limit specified in section 269T made during the previous year:
(i) name, address and permanent account number (if available with the assessee) of the payee;
(ii) amount of the repayment;
(iii) maximum amount outstanding in the account at any time during the previous year;
(iv) whether the repayment was made otherwise than by account payee cheque or account payee bank draft.

39. Clause 24(B) Section 269T states that:
The aggregate amount of loan or deposit taken by or amount of loan standing together with interest remaining payable there on by the assessee is repaid other than by a account payee cheque or draft is Rs or more then details of loan or deposit from a person other than a Government company, a banking company or post office or a cooperative bank or a corporation established by a Central, State or Provincial Act. shall be covered by this clause.
Even if the amount of loan repayment is less than Rs but the loan amount is more than Rs it is to be covered here.
Penalty under section 271 E is leviable which is equivalent to the amount of loan repaid.

40. Clause 27
27(a) Whether the assessee has complied with the provisions of Chapter XVII-B regarding deduction of tax at source and regarding the payment thereof to the credit of the Central Government
28(b) If the provisions of Chapter XVII-B have not been complied with please give the following details*, namely:   (i) Tax deductible and not deducted at all
(ii) Shortfall on account of lesser deduction than required to be deducted
(iii) Tax deducted late
(iv) tax deducted but not paid to the credit of the Central Government    

41. Clause 27
Chapter XVII-B relates to provision of regarding TDS deduction and payment of TDS deducted to the account of government.
Due dates for payment of TDS are(but compliance for deposit of TDS done late is not to be reported here but in clause 21(a)):
Here , TDS on works contract as per state vat laws is not covered.
Tax is not deductible under section 193, 194 and 194A is not deductible if form 15G/15H is furnished by the assessee u/s 197A.
If assessee has obtained form 13 u/s 197 for lower deduction a copy of it is to checked.
Quarters
Due date for payment
30th June
7th July
30th September
7th October
31st December
7th January
31st March
30th April

42. Clause 27 Nature of Payments Made to Resident Threshold
Company Firm Co-op Soc. Local Authority
Individual HUF
If No PAN OR Invalid PAN
Sec.
Description
Amount
RATE
194A
Interest - Payable by Banks
10,000 10 20
Interest - Payable by Others
5,000
194B
Winning from Lotteries / Crossword Puzzle 30
194C
Payment to Contractors - Single Transaction
30,000 2 1
Payment to Contractors - Aggregate during FY
75,000
194D
Insurance Commission
20,000
194H
Commission / Brokerage
194 I
Rent
1,80,000
Rent - Plant / Machinery
194J
Professional or Technical Fees(including service tax)

43. Clause 27 For non compliance of chapter XVII-B penalty is leviable:
Penalty – assessee in default u/s equal to the amount of tax in arrears.
Section 271C;
Penalty for failure to deduct tax at source as required or under the provisions of Chapter XVII-B. Penalty Equal to Tax.
Section 276B:
Fails to pay to the credit of Central Government, tax deducted at source by him as required by or under the provisions of Chapter XVII-B.
Imprisonment Period 3 months to 7 years and with fine.

44. Clause 32 Accounting ratios with calculations as follows:
(a) Gross profit / Turnover;
(b) Net profit / Turnover;
(c) Stock-in-trade / Turnover;
(d) Material consumed / Finished goods produced.
These ratios have be calculated only for assessees who are engaged in manufacturing or trading activities.
This clause is not applicable to assessees carrying on profession.
Moreover, the ratios have to be given for the business as a whole and need not be given product wise.
Further, the ratio mentioned in sub-clause (d) need not be given for trading concern.

45. THANK YOU