The document provides information about e-filing of tax audit reports in India. Key points include: - Tax auditors are now required to electronically file tax audit reports for certain types of audits. - To do so requires a system with certain minimum specifications and installing Java runtime files. - Four attachments must be uploaded with the tax audit report: balance sheet, profit and loss account, cost audit report if applicable, and other audit reports. - Errors can occur during uploading which may require checking the XML file directly or importing it into Microsoft Access to view the entered data. Guidance is provided on potential issues and their resolutions.

1. E- Filing of Tax Audit Report

3. • Pursuant to amendment in Rule 12 of the Income
Tax Rules, by the Notification no42 dated
11/6/2013, the following proviso has been
inserted in sub- rule (2) of rule 12.
• “Provided that where an assessee is required to
furnish a report of audit specified under subclauses (iv), (v), (vi) or (via) of clause (23C) of
section 10, section 10A, clause (b) of sub-section
(1) of section 12A, section 44AB, section 80-IA,
section 80-IB, section 80-IC, section 80-ID, section
80JJAA, section80LA, section92E or section
115JB of the Act, he shall furnish the same
electronically.”

4. WHY E -FILING OF TAX AUDIT REPORT
• Minimize chances of mismatch between the
return and report
• CA can keep track of his limit of tax audit. (45)
• There may be cases where Assessee
deliberately do not disclose the disallowance/
remarks of tax auditor
• Earlier since signed report was not available, it
was difficult for the Income Tax Department to
trace such instances.

18. SYSTEM REQUIREMENTS TO OPERATE
E- UTILITY
• At least your system configuration Microsoft
XP Service Pack 3 or Higher like windows 7 /8.
• RAM 2 GB for faster data entry and speed your
work on e-utility.
• Java Run Time Environment Version 7 update
6 to be downloaded from e- filing web sites.
• Remove All Previous Versions Of Java from
Your PC.

20. Preparation of Utility

21. Uploading of form- First Screen

22. Uploading of form- After Input of DATA

23. FOUR ATTACHMENTS REQUIRED TO BE
UPLOADED ALONG WITH TAX AUDIT REPORT
• 1. Balance Sheet (Mandatory)
• 2. Profit & Loss Account (Mandatory)
• 3. Cost Audit Report
• 4. Excise Audit/other audit report
• Attachments must be either in “tiff” or “pdf”
format and with size up to 20 MB
• Though Notes to Accounts are not mandatory but
as a prudent practice they should also be
submitted along with these documents as they
are parts of BS & PL.

24. Error message- if any

25. ERROR ON UPLOADING & ITS
IDENTIFICATION
• The E-filing Site Sometimes Shows Error While
Uploading Xml Of TAR, ITR & Other Forms.
• The error is in XML language and cannot be
easily identifiable. Error can be located by
opening xml file in internet explorer and using
search option
e.g.:- 1. <OCDI_Description>
•
•
2. <Related PAN>
3. <RelatedParyType>

27. Confirmation of uploading

28. Assesse account position before
approval

29. Form approved

30. Form rejected- reasons to be given

31. Checking of status from Income Tax
Website

32. My Account----View Forms
View Forms displays the list of Forms uploaded by CA
for an assesse. The CA will type the PAN of the
assesse and clicks SUBMIT button

33. PENALTY
• Penalty U/s 271B for non- filing of Tax Audit
Report becomes live again.
• It is necessary for assessee to approve the
tax audit report uploaded by CA before
the due date of filing the tax audit
report else it will be assumed that no
tax audit report has been furnished by the
assessee.

34. NO PRINT OPTION TO CHECK FILLED
DATA IN E UTILITY
• The E-PR 7 Utility Is Only For Saving the
Draft In Xml Format. It Is Not For
Viewing The Filled Data.
• As Such The Tax Auditor Is Not In A Position To
Check Possible Inconsistency/ Error.
• View The Data Using Microsoft Access 2010 Or
Higher. The Process Is As Below:-

35. • Step 1: Creating a Blank Database
• Open MS Access- Create a Blank Database File

36. • Step 2: Importing the desired XML file
Click on External Data Tab
•
In the Import Option Category -Click on XML File
•
1Click on
External
Data tab as pointed
above
2Then Click on
XML Filee

37. • Browse for the relevant xml file location
• Step 3- Browse the location of the XML file to be imported
Browse for
the relevant
xml file
location

38. Step 4 - Select “Structure and D T ” in the Import XM
L option that pops up and Click on OK.

39. Step 5 - The Desired XML files stands imported in a gets
listed in a tabular manner in the left hand.
And Here you Go !!
The tables gets listed here.
Click on the respective tables and see
the desired details as filled by you in
the e-PR7 utility under those heads.

40. Signed Copy Vs. SD/- Copy Vs. Digitally
Signed
• In E -Filing Website It Is Clearly Given That “Where there is
a requirement in the form to submit a signed copy of
documents by an assessee/CA as an attachment, Upload
the Scan Copy of the attachments.
• In My View it is safer to upload Physically Signed Copy Of
Audit Report + Balance Sheet + Statement of Profit And
Loss +Notes To Accounts.
• Sd/- Signed Copy is to be Avoided.
• You can upload digitally signed Copy of Audit Report +
Balance Sheet + Statement of Profit And Loss +Notes To
Accounts.

41. The Process is as follows :1. Install The Digital Signature/ Pfx File Of Client & CA.
2. Open the Word/Excel File
3. Place Cursor where u want to digital sign
4. In Microsoft word/Excel Go To Tab “INSERT” and
Click On “Signature Line”
5. Click On OK
6. Fill the Data as per screen Shot and Click “OK”

42. 7. Repeat the same process 3 to 6 for Putting Digital
Sign of Your Client by placing cursor at another place
8. After the Process your file appears as follows:-

43. 9. Click on each symbol and Fill the Name in X and Select
the Digital signature by using Change Option and
SIGN
10. Repeat the process Stated In 9 for your client also.
11. Convert the word/Excel File In PDF.

44. DIGITAL SIGNATURE IN PDF FILE
• You can digitally sign your pdf documents from the
following link:-
• https://www.globalsign.com/en-in/pdf-signingtool/
• Create a JPG Image of your Signature.
• Follow the steps required in the following link like
showing the path of your Digital Signature, Show
the files you wish to sign and choose location
where you sign in the page (Preferable last page).
• After Signing Save the documents.

45. TAX AUDIT UNDER SECTION 44AD,
44AE AND 44AF
• Tax Audits conducted under section 44AD,
44AE and 44AF of the Income-Tax act, 1961
shall not be taken into account for the
purpose of reckoning the “specified number
of tax audit assignments”.i.e..... 45 Limits.

46. STRINGENT ACTION BY ICAI
If any member uploads more than 45 Tax
Audit reports of 44AB then later on ICAI may take stringent
action. ICAI Allowed todata of members uploaded the
access
Tax Audit
Report.

47. WHETHER PARTNER CAN SIGN & UPLOAD
TAR ON BEHALF OF ANOTHER PARTNER
Yes One Partner can sign on behalf of another
partner and upload it to e filing web site
subject to condition that the overall limit
does not exceed.

48. COMPUTER VERY SLOW AFTER
OPENING E- UTILITY
• If your system is getting slow down during
the working on e-utility it may be due to 2 or
more versions of java on the system; remove
old version of java to improve performance.
• After removal data entry becomes very fast.

49. INHERITENT ERROR FOR YES /NO
OPTION
• The e-filing utility has some inherent errors to the
extent that after a draft saved file is reopened at
least 10 fields asking for „yes” or “no” has to be
re-entered as many number of times one
reopens the draft saved data xml file. These
fields are clause no's 7(b), 8(b),9(a),10, 11(d), 12
(b), 21(note), 22(a), 22 and 23.
• Do not Worry the XML File Contains Right Data.

50. INHERITENT ERROR FOR
QUANTITATIVE DETAILS
• The display in clause no 28 of Tax Audit Report
(quantitative details) also shows only one row
on reopening of the draft leading to misbelieve
that whether data in only one row was
entered?. The other rows gets themselves hide
in the software resulting into unnecessary
embarrassment to the person feeding the data.
• Do not worry the XML File Contains All Data. You
can view your data by opening XML File In Internet
Explorer or by using Microsoft Access.

51. INHERITENT ERROR FOR 269SS &
269T DETAILS
• In case the no of entries therein exceed 25
items, the same are not appearing in the pdf
downloaded by the assessee however, the
same is appearing in the xml file uploaded by the auditor.
• In such a situation, the assessee will always
be tempted to reject the 3cd uploaded by the
auditor

52. REJECTION OF TAR UPLOADED NEEDS
FRESH DATA ENTRY IN UTILITY
• The e-filing web site does not allow the tax
auditor to upload the same xml file which has
been rejected by the assessee due to any
error.
• The e filing site flashing a reason that the DSC
of the tax auditor is invalid instead of
creation of new xml file.

53. ADDRESS ERROR
• While Filing Address In Form 3CA,3CB, PARTA of Form 3CD, and in 269SS & 269T the use
of special characters like ,(Comma) - (Minus)
is to be avoided.
• E- Filing Site Shows Errors at the time of
Uploading.

54. REVISED TAX AUDIT REPORT
• As per GUIDANCE NOTE ON TAX AUDIT UNDER
SECTION 44AB OF THE INCOME-TAX ACT, 1961
However, sometimes a member may be required
to revise his tax audit report on grounds such
as:
(i) revision of accounts of a company after its adoption
in annual general meeting.
(ii) change of law e.g., retrospective amendment.
(iii) change in interpretation, e.g. CBDT Circular,
judgements etc.

55. PROBLEM OF FAKE PATH FOR DSC
•
•
•
•
This problem is due to your internet explorer browser settings.
Please do the following:OPTION-1
IN INTERNET EXPLORER-> TOOLS ->INTERNET OPTION >SECURITY -> CUSTOM LEVEL-> ENABLE "INCLUDE LOCAL
DIRECTORY PATH WHEN UPLOADING FILE TO THE SERVER".
• OPTION-2
• CREATE FOLDER IN THE "C" DRIVE C LLED “F KEP TH”
(C:FAKEPATH) AND COPY THE XML FILES TO THIS FOLDER.
• IN GOOGLE CHROME SECOND OPTION WILL WORK.

56. PROBLEM OF “C NNOT RE DXML FILE”
THE
In case of windows vista/windows 7,
•Go to start-->control panel--> program--> java-> general tab.
• click on “settings” button in 'temporary internet files'.
• kindly uncheck the “keep temporary files on my computer” and
• click the “delete files” button and press ok.
• close your existing browser and open a new
browser.

57. Offline Forms (Other than ITR) Given
In E-Utility
Form
Name
Form Description
Form3CA/3CB-3CD
Tax Audit Report
Form 3CEB
International Transaction(s)
Form 29B
Report Under Section 115JB
Form 6B
Audit Report Under Section 142(2A)
Form 10B
Charitable Or Religious Trusts Or
Institutions
Form 10BB
Institution Or Any University Or Other
Educational Institution

58. Issues ICAI WEBCAST
Issue
Date of Receipt of Audit
Report (Whether Date of
filing by CA or date of
Acceptance by Assessee)
Mismatch between PAN
date of Birth and Date of
Birth in ICAI database
Resolution
While Audit Report will
become valid on acceptance
by Assessee, Date of upload
would be treated as date of
filing
PAN Correction is the
correct resolution
DSC May be dispensed with Not acceptable.
10/19/1
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59. Issues ICAI WEBCAST
Issues
Resolution
Guidance Note on tax audit ICAI had suggested that
u/s 44AB of the Income-tax separate column may be
Act, 1961” requires the tax No. created withof Form
in Para 3 of Form
3CA/ Para 3(a) the clause
auditor to meNo.3CB,his
itself; this would require a
observations/reservations, if change in the form by TPL.
any, in respect of various
More space is being created.
clauses of Form No.3CD in
Form No.3CD itself for the
ease of the AOs
A sub Committee of ICAI
and ITD examining the
additional space in Para 3
of Form No. 3CA/ Para
3(a) of Form No.3CB,
10/19/1
2

60. ICAI WEBCAST
Issues
Resolution
Word limit has been fixed for More space is being created.
reporting in the e-filing
A sub Committee of ICAI
schema like under eachForm No. and ITD 3(a) of Form the
in Para 3 of
3CA/ Para examining
clause of ForNo.3CB, 3CD limit additional space
is set at 100, for observations requirements
and comments the limit is
fixed at 1000/2000, for
ratios and computation
thereof the limit is 30
10/19/1
2

61. ICAI WEB CAST
Issues
Resolution
Capturing Signatures of
ICAI pointed out that only
More than one CA in the
in the case of disagreement
Capturing Signatures of More than one CA in
instance of joint instance of joint Audits. Para 3(a) of separate reports
Audits.
would two Form
the
be required to be filed. Thus
Revised AuditAccording to the institute in case joint Auditors
disagree there may be more than one Audit report
enabled
under DSC of different CAs
are enabled
Revised Reports can be filed
10/19/1
2

62. ICAI WEB CAST
Issues
Resolution
The facility of import of data For ITD to Provide
form multiple formats (Excel import facility for
etc.) should be created to No. multiple3(a) of Formmay
in Para 3 of Form
3CA/ Para formats
prevent tedioNo.3CB,a entry/ not be viable. ICAI/
dta entry errors especially
ERIs can consider
with regards to depreciation working on such
schedule and other large
schedules
Utilities. However a
standard CSV format
for Depreciation
schedule shall be made
available to permit
10/19/1
2

63. ICAI WEB CAST
Issues
Resolution
17- Separate disclosure
While a change in the
for different nature of
form is being suggested
disallowance is not of Form No. to TPL 3(a) of Form
in Para 3
3CA/ Para
No.3CB,
possible
Increasing space for
Under this clause only single remarks at the end of
amount of disallowance can the form is being
be specified in sub-clauses
worked out subject to
17(a)/ (b)/ (c)/ (d)/ (e)/ (f).
overall limit of 50MB
10/19/1
2

64. ICAI WEB CAST
Issues
Resolution
•PAN to not be a mandatory
field in the 206A cases
These issues stand
resolved.
. 3CA/ Para 3(a) of Form
•No order nu in Para 3 of Form No
brought forwNo.3CB,ss
reference order
PDF documents/ Text or
•Difficulty in uploading
Excel documents can be
scanned P&L accounts and
uploaded. Working on
balance sheets
convergence with MCA
10/19/1
2