CBDT Seeks suggestions/ comments on draft Form No. 6C by 31st August 2023

The Central Board of Direct Taxes (CBDT) is asking for feedback about Form 6C, which is used to value inventory. They want input from everyone, including the public, on the draft Form 6C. You can send your suggestions or comments to the email address ustpl3@nic.in by August 31, 2023. 

This move is based on a section in the Income Tax Act, called Section 142(2A), which says that if the Assessing Officer (who checks tax-related matters) finds the accounts complicated, with doubts about accuracy or many transactions, they can ask the taxpayer to get their accounts audited by an accountant. The specific form for this is Form No. 6B, which is part of the Income-tax Rules 1962.

As part of the Finance Act 2023, changes were made to Section 142(2A) of the Income Tax Act. This allows the Assessing Officer to instruct the taxpayer to have their inventory valued by a Cost Accountant, selected by higher-level authorities. 

The taxpayer then needs to provide a report of this valuation using a specific form, which the Cost Accountant verifies.

To support this, adjustments were made to Rule 14A and Rule 14B within the Income Tax Rules, which are needed for implementing the new provision. 

Additionally, a draft of Form No. 6C, which is the inventory valuation report form, has been created. The government is inviting feedback from relevant parties and the general public regarding this draft form.

Read The Full Notification Here

https://incometaxindia.gov.in/Lists/Latest%20News/Attachments/598/Public-consultation-OM-and-draft-form.pdf 

Also Read: Be Careful of Income Tax Scams: IT Department Issues Clarification On

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