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CBDT Defers Clause 30C and Clause 44 in Tax Audit Report Form 3CD till March 2022


CBDT vide an Order dated 25th March, 2021 deferred and postponed the reporting requirement of Clause 30C and Clause 44 related to GAAR and GST respectively in Tax Audit Report Form 3CD from 31.03.2021 to 31st March, 2022. This Order dated 25th March 2021 is issued vide a Circular No. 05/2021 dated 25.03.2021.

Earlier, the date was extended to 31.03.2021 by the CBDT vide an Order dated 24.04.2020. At that time, the postponement of the reporting of clause 30C and clause 44 was done due to COVID-19 pandemic situation.

For the same pandemic reason, CBDT has once again deferred and extended the reporting requirement under clauses 30C and 44 in Form 3CD to 31st March, 2022.

The changes in Tax Audit Report (TAR) for Clause 30C pertains to General Anti-Avoidance Rules (GAAR) and Clause 44 pertains to Goods and Services Tax (GST) compliance) of Form 3CD is deferred for the third time till March 2022.


No further extension to keep these clauses in abeyance is provided by the CBDT after March 2022. Hence, Clause 30C and Clause 44 shall apply thereafter and any tax audit report filed on or after 1st April, 2022 shall have these clauses filled. In other words, these two clauses have become applicable for the tax audit reports in Form 3CD for the FY 2021-22.

Tax Audit Report in Form 3CD was revised or changed in July 2018 by Notification No. 33/2018 dated 20.07.2018 inter alia to incorporate the following two clauses - Clause 30C on reporting of GAAR transactions and Clause 44 on reporting of GST transactions.

30C. (a) Whether the assessee has entered into an impermissible avoidance arrangement, as referred to in section 96, during the previous year? (Yes/No.)

(b) If yes, please specify:—

(i) Nature of impermissible avoidance arrangement: 

(ii) Amount (in Rs.) of tax benefit in the previous year arising, in aggregate, to all the parties to the arrangement:

44. Break-up of total expenditure of entities registered or not registered under the GST:

Sl No

Total amount of Expenditure incurred during the year

Expenditure in respect of entities registered under GST

Expenditure relating to entities not registered under GST

Relating to goods or services exempt from GST

Relating to entities falling under composition scheme

Relating to other registered entities

Total payment to registered entities








The operation of the two clauses was deferred till March 2019 vide CBDT Circular No. 06/2018 dated 17.08.2018.

In May 2019, the CBDT had again deferred its implementation till March 31, 2020 to make these clauses applicable from April 1, 2020 vide CBDT Circular No. 09/2019 dated 14.05.2019.

Due to the COVID-19 pandemic and the country-wide lockdown imposed in March 2020, CBDT again extended the applicability date of these two clauses by an Order u/s 119 dated 24.04.2020 issued vide Circular No. 10/2020 dated 24.04.2020 till March 2021.

Under the Income Tax Act, 1961, every person carrying on business is required to get his accounts audited, if his total sales, turnover or gross receipts, in business exceed or exceeds Rs. 1 crore in any previous year. The Tax Audit turnover threshold limit has been increased to Rs. 5 crores for business under section 44AB where at least 95 per cent turnover is made on digital transactions. 

This turnover limit for compulsory tax audit has been further increased to Rs. 10 crore vide Finance Act, 2021.

In the case of a person carrying on the profession, he is required to get his accounts audited, if his gross receipt in profession exceeds, Rs. 50 lakh in any previous year.

Finance Act, 2020 has made further changes in tax audit report filing due date to specify one month prior to the due date for furnishing the return of income under section 139(1).

With this order dated 25.03.2021, the reporting requirements under clause 30C and clause 44 of the Tax Audit Report is kept in abeyance till March 2022. This means for Tax Audit Reports to be furnished till March 2022, the tax auditors will not be required to furnish details called for under the said clause 30C and clause 44 of the Tax Audit Report. 

Read the full text of Circular No. 05/2021 dated 25.03.2021 on deferment of applicability of Clause 30C and Clause 44 of Form 3CD

Circular No. 05/2021

F.No. 370142/9/2018-TPL

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

TPL Division


New Delhi, dated 25th March, 2021

Order under section 119 of the Income-tax Act, 1961

Section 44AB of the Income-tax Act, 1961 (‘the Act’) read with rule 6G of the Income-tax Rules, 1962 (‘the Rules’) requires specified persons to furnish the Tax Audit Report along with the prescribed particulars in Form No. 3CD. The existing Form No. 3CD was amended vide notification no, GSR 666(E) dated 20th July, 2018 with effect from 20th August, 2018, However, the reporting under clause 30C and clause 44 of the Tax Audit Report was kept in abeyance till 31st March, 2019 vide Circular No. 6/2018 dated 17.08.2018, which was subsequently extended to 31st March, 2020 vide Circular No. 9/2019. Vide circular no, 10/2020 dated 24.04.2020, it was further extended to 31st March, 2021.

In view of the prevailing situation due to COVID-19 pandemic across the country, it has been decided by the Board that the reporting under clause 30C and Clause 44 of the Tax Audit Report shall be kept in abeyance till 31st March, 2022. 

(Ankit Jain)

Under Secretary (TPL)-III


Download CBDT Circular No. 5/2021 dated 25.03.2021 on deferment of Clause 30C and Clause 44 of Form 3CD in pdf format

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