Form 3CD Clause 21
Form 3CD Clause 21 Disallowances Audit Utility
Scrutinize expenditure ledgers for amounts inadmissible under Sections 40(a), 40A(3), 40A(7), and personal expenditure completely offline.
Output View: Form 3CD Clause 21Offline Desktop Result
Clause 21 Cash Payment & Disallowance Audit Dashboard
THE AUDIT BOTTLENECK
Traditional Manual Process & Exposure
Manually checking cash vouchers for Section 40A(3) violations (>₹10,000 per person per day) in large ledgers is prone to missing hidden cash payments.
Manual Excel Friction Steps:
- ✕Filtering cash payment vouchers manually across all ledger heads
- ✕Grouping daily cash payouts by payee name to check ₹10,000 threshold breaches
- ✕Checking TDS non-deduction amounts for Clause 21(b)
HOW CACONTROL AUTOMATES IT
Rule-Based Desktop Precision
CAControl scans the entire ledger database, aggregating daily cash payouts by payee to flag Section 40A(3) breaches and TDS non-deductions instantly.
Key Benefits & Safeguards:
- Pre-populates Clause 21(a) personal expenditure disallowances
- Automates Section 40A(3) daily payee cash aggregation
- Generates Clause 21(b) TDS disallowance schedules under Sec 40(a)(ia)
Topic FAQs: Form 3CD Clause 21 Disallowances Audit Utility
Clear statutory guidance and technical implementation details.
Yes. The algorithm distinguishes transport payees and applies the statutory ₹35,000 limit.