Income Tax

All you need to know about Form 3AC under Income Tax Act, 1961

The article entails the meaning of Form 3AC, its contents, need to file this form, and the procedure to file.

What is Form 3AC?

Form 3AC is an audit report of the accounts of business or profession of an assesse under sub-section (2) of section 33AB of the Act. It applies to the persons carrying the business of tea or coffee or rubber development. The audit reports consist of:

• Audited accounts of business or profession
• Non-audited accounts of business or profession
• Statement of particulars

Form 3AC can only be filed online, and a DSC (Digital Signature Certificate) is mandatory for filing. Form No. 3AC is filed along with the ITR as per the due date mentioned under section 139 (1) of the Act.

What is the need to file Form 3AC?

Form 3AC is filed to claim the deductions under section 33AB (1) for the accounts of a business or profession of an assesse is furnished under Section 33AB (2) of the Act. The business talked about in this section is of tea or coffee or rubber development.

Contents of Form 3AC

It consists of 3 parts:

• Part I

It contains the details of the business or profession of a person whose accounts have been audited under any other law.

• Part II

It contains the details of the business or profession of a person whose accounts have not been audited under any other law.

• Part III

It contains the statement of particulars to claim the deduction under section 33AB of the Act.

How does Section 33AB (2) & Rule 5AC related to Form 3AC?

Form No. 3AC is a format according to Rule 5AC in which the accounts of a business or profession of an assesse is furnished under Section 33AB (2) of the Act.

Section 33AB (2)

To claim deductions under section 33AB (1), the accounts of business or profession of the assesse must be audited by an accountant of the previous year relevant to the assessment year.

The accountant is defined in the Explanation of sub-section (2) of section 288 as a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949), who holds a valid certificate of practice.

Rule 5AC

Rule 5AC talks about the report of audit of accounts under Section 33AB (2). It states that the audit report of the accounts of the business or profession of an assesse must be furnished under sub–section (2) of section 33AB in the Form No. 3AC.

Section	Rule	Purpose	Form
33AB (2)	5AC	Assesses growing and manufacturing tea or coffee or rubber, claiming deduction regarding special deposits made u/s. 33AB (1).	3AC

What are the steps to file Form 3AC?

The following steps are to be followed to file Form 3AC:

• Visit the e-filing portal (www.incometaxindiaefiling.gov.in).
• Login using the credentials.
• Click on the e-File menu.
• Select the form to be filed from the drop-down menu.

Conclusion

Form 3AC is an audit report of the accounts of business or profession of an assesse under sub-section (2) of section 33AB of the Act. It applies to the persons carrying the business of tea or coffee or rubber development.

Thus, it is essential to file Form 3AC to claim deductions under section 33AB (1) in relation to the business of tea or coffee, or rubber development.

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