Key Difference in New Tax Audit form 26 and old Form 3CD : New Income Tax Act 2025
Based on the Draft Form No. 26 (Income-tax Act, 2025) and the existing Form 3CD (Income-tax Act, 1961), here is a comparison of the key differences:
Comparison: Form 3CD vs. Form 26
| Feature | Form 3CD (Existing Rules / Act 1961) | Form 26 (New Rules 2026 / Act 2025) |
|---|---|---|
| Governing Section | Section 44AB of the Income-tax Act, 1961. | Section 63 of the Income-tax Act, 2025. |
| Structure & Reporting | Statement Only: Form 3CD is strictly a statement of particulars. The Auditor’s Report is a separate document (Form 3CA or 3CB). | Integrated Report: Form 26 merges the Audit Report and the Statement. Part C corresponds to the old Form 3CA, and Part D corresponds to the old Form 3CB,,. |
| Clause Count | 44 Clauses. | 53 Clauses (plus extensive Schedules). |
| Books of Account (Digital) | Requires a list of books and address. Mentions computer systems generally. | Tech-Focused: Specifically asks for details of cloud storage, including the internet protocol (IP) address and location. It also asks if the backup server is located in India per Rule 46(8),. |
| Audit Qualifications | The auditor reports observations in the separate Form 3CA/3CB. | Quantified Impact: The form includes specific tables in Parts C and D to quantify the “Net impact” of audit qualifications on profit/loss,. |
| Cost Audit | Clause 37: Asks for details of disqualification or disagreement. | Clause 12(c): Requires attaching a copy of the cost audit report and quantifying the impact of any disagreement. |
| Loans & Deposits | Clause 31: References Section 269SS/269T. Limits apply to “taking” or “accepting” loans/deposits. | Clause 45: References Section 185, 186, and 188 of the new Act. The structure is similar but aligned with the new section numbers,. |
| Unquoted Shares | Covered generally under “income from other sources” (Clause 29B). | Clause 47: Explicitly requires a schedule for “Particulars of transactions in unquoted shares,” including Fair Market Value (FMV) and book value per share,. |
| Transfer Pricing | Clause 30A: Primary adjustments under Section 92CE. | Clause 40: Primary adjustments under Section 170(1) of the new Act,. |
| Interest Limitation | Clause 30B: EBITDA based interest limitation under Section 94B. | Clause 41: Interest limitation under Section 177(1) of the new Act,. |
| GST Reporting | Clause 44: Break-up of total expenditure for entities registered/not registered under GST. | Clause 52 & Schedule GST: Requires similar break-up details but presented in a dedicated schedule,. |
| TDS/TCS Compliance | Clause 34: Detailed table on tax deduction/collection and payments. | Clause 50 & 51: Adds specific checks for liability to pay interest under Section 398(3)(a) and explicitly separates disallowances under Section 35(b),. |
| General Info | Basic details (Name, Address, PAN). | Expanded details: Includes Email id, Country Code, and Contact Number. |
| Data Organization | Details are often filled directly into the main clause list. | Uses a “Refer Schedule” approach, moving detailed data (like changes in partners, ICDS adjustments, quantitative details) to separate attached schedules to keep the main form cleaner,,. |