Losses, TDS, ratios and expenditure
Clauses 32 to 44: brought-forward losses, TDS and TCS, stock, ratios and the GST-wise breakup.
Clauses 32 to 44 — losses carried forward, tax deducted at source, stock quantities, ratios and the expenditure breakup. Wizard steps 8 and 9.
Brought-Forward Losses & Chapter VI-A (Clauses 32, 33)
- Clause 32
Losses and depreciation brought forward, by assessment year, with the amounts as returned and as assessed.
- Clause 33
Deductions admissible under Chapter VI-A or Chapter III.
Note
The as-returned and as-assessed columns differ wherever an assessment has concluded. Take these from the assessment orders, not from last year's return.
TDS / TCS (Clause 34)
Three parts, and the longest data entry in the form:
- 34(a)
Section-wise: amounts on which tax was deductible, on which it was deducted, deducted at less than the specified rate, and deposited.
- 34(b)
Statements not filed within the prescribed time, by TAN and quarter.
- 34(c)
Interest payable under section 201(1A) or 206C(7), and paid.
Warning
Reconcile clause 34 against the TDS returns actually filed, not against the expense ledgers. A payment on which tax was deductible but never deducted appears in the books as an ordinary expense — the books cannot tell you it is missing from a return.
Quantitative Details of Stock (Clause 35)
Opening stock, purchases, consumption, sales, closing stock and shortage, in quantity — for a trading concern by item, for a manufacturer by raw material, finished goods and by-products.
Quantities come from Tally where stock items are maintained. Where they are not, this is entry from the stock records.
Dividend, Audits & Deemed Dividend (Clauses 36–39)
- Clause 36ASection 2(22)(e)
Deemed dividend received.
- Clause 37
Cost audit, and any qualification.
- Clause 38
Audit under the Central Excise Act.
- Clause 39
Audit under section 72A of the Finance Act, for service tax on valuation.
For each, whether the audit was carried out and what it disclosed by way of qualification.
Financial Ratios (Clause 40)
Total turnover, gross profit ratio, net profit ratio, stock-in-trade to turnover, and material consumed to finished goods produced — for the year and the preceding year.
Computed from the figures already in the report, but check them. A ratio that moves sharply is either a real change worth understanding or a classification error worth finding.
Each row is placed on the form by its name. An amount named turnover, sales or gross receipts prints as (a); a ratio prints on the line its numerator names: gross profit on (b), net profit on (c), stock on (d), material consumed on (e). A ratio is never printed as the turnover, whatever its denominator says, and a row whose name matches none of these is left off the form. On a fetched report OptiVida writes the turnover and the three ratios it can compute.
Observations / Qualifications (Form 3CA/3CB)
The last section of this step. What you enter here prints on the audit report above the accountant's details, one row per observation; nothing entered prints Nil. See Generating the audit report + 3CD.
Demands, Forms & CbCR (Clauses 41–43)
- Clause 41
Demand raised or refund issued under any other tax law, with particulars.
- Clause 42
Form 61, 61A or 61B, and whether furnished within time.
- Clause 43
Country-by-Country reporting under section 286.
Breakup of Total Expenditure — GST-wise (Clause 44)
Total expenditure split between entities registered under GST and those not, with the registered portion analysed further.
Note
The total here must reconcile to total expenditure in the profit and loss account. It is the clause most often left inconsistent, and the reconciliation is the first thing a reviewer checks.
Last updated 30 Sept 2026
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