Income Tax Audit: Changes in Tax Audit Clauses You Should Know:

Income Tax Audit: Changes in Tax Audit Clauses You Should Know The income tax department has made a few changes to the tax audit clauses. These changes aim to improve the accuracy of the tax audit report and make the filing easier. Let us know about these changes one by one. Clause 12: This clause now includes Section 44BBC for the non-resident cruise operators and broadcasters who have opted for the presumptive taxation scheme. Section 44BBC was introduced through the Finance Act (2), 2024. Clause 19: In this case, the references to sections like 32AC, 32AD, 35AC, 35CCB, 80-IB, 80-IC, and 80-ID have been removed due to the sunset clause. Clause 21: This clause has increased the reporting requirement. Now, any expenses made for regulatory or contractual settlements must be reported. Clause 22: It is now compulsory to disclose the payments made to MSMEs (Micro, Small, and Medium Enterprises), whether they were made on time or delayed. Additionally, the interest disallowed under section 23 of the MSMED Act must also be reported.

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Clause 26: This clause has been updated to clarify the language and provide better references to related clauses under Section 43B. Clauses 28 and 29: Clause 28 and Clause 29, which earlier required reporting under Sections 56(2)(viia) and 56(2)(viib), respectively, have been removed. Clause 31: This clause now requires the reporting of Loans/deposits without classification. A new dropdown has been inserted for the nature of the transaction, like cash, journal, etc. Clause 36B: A new clause has been added to report details of the buy-back of shares under Section 115QA.