Form 3CB and 3CD are reporting formats used by an auditor who is auditing the books of accounts of taxpayers to whom tax audits are applicable. These forms are used to certify the correctness of books of accounts maintained by the taxpayer, report observations/discrepancies noted by the Chartered Accountant (CA), and report prescribed information in compliance with various provisions of the Income Tax Act.

Form 3CB is an audit report prepared by a Chartered Accountant on behalf of the assesses who are carrying out a business or profession. It is applicable in case of a person who carries on business or profession and who is not required under any other law to get his accounts audited. On the other hand, Form 3CD is prepared by a Chartered Accountant on behalf of the assessees who get their accounts audited. It contains a detailed overview of all the prescribed particulars regarding tax auditing.

The major components of Form 3CB include details of the assessee, date of the audit report, details of the auditor, and a declaration by the Chartered Accountant that all the filled details and the Annexure are true and correct subject to qualifications/observations if any. The major components of Form 3CD include the name of the taxpayer, address, Permanent Account Number (PAN), the taxpayer’s liability to pay indirect tax, status of the return, relevant previous year, assessment year, and a detailed statement of particulars containing 41 clauses.

In summary, Form 3CB and 3CD are reporting formats used by Chartered Accountants to certify the correctness of books of accounts maintained by the taxpayer and report observations/discrepancies noted by the auditor. Form 3CB is applicable in case of a person who carries on business or profession and who is not required under any other law to get his accounts audited, while Form 3CD is prepared by a Chartered Accountant on behalf of the assessees who get their accounts audited.