Every Form 3CD clause, audited from live Tally books
Tax audit under section 44AB the way a senior partner runs it — one clause at a time. For each of the clauses of Form 3CD the programme shows what the ICAI Guidance Note (Revised 2026, the eleventh edition) asks, what the client's books already answer and what is still needed; a machine procedure computes the tables (loan registers for 269SS/T, TDS reconciliation, MSME ageing, section 43B movements, block depreciation, quantities, the clause 44 break-up); an AI auditor you instruct audits the clause against the Guidance Note, your documents and the computed data; and you decide every item. The Form 3CD is assembled from your conclusions. A chatbot over the ledgers — Ask the books — audits whatever you ask it to, the way you tell it to.
How one clause is audited
The same six steps for every clause — from "Name of the assessee" to the GST break-up in clause 44. Nothing is concluded for you; everything is prepared for you.
What the form asks
The notified particulars, and the Guidance Note's procedures, evidence, thresholds and pitfalls for this clause, digested from the Revised 2026 edition.
Data we have · need
Every input the clause needs, whether the books already hold it, and how to obtain what is missing — Udyam list, deed, 26Q, prior 3CD…
Machine procedure
Code computes the clause's tables and candidate rows from every voucher. Each row opens the voucher behind it. Deterministic, repeatable, auditable.
AI audit, your way
The AI reads the GN chapter, the computed data, your tagged documents and your instruction. It returns findings with evidence, a suggested conclusion and draft clause text.
Your decision
Report or Not reportable on every item, with your remark. Conclude the clause: Report, Nil or Not applicable. Decisions survive re-runs.
Into the report
The clause text you settle is what the Form 3CD carries. Observations feed the 3CA/3CB draft, the MRL and the workpapers.
TaxCorp Tally Bridge
LIVE BOOKS, NOT EXPORTSA small Windows app that runs beside TallyPrime. It pulls the audit period from Tally's own gateway and sends it — compressed and secured — into your engagement: ledger masters with PAN, GSTIN, registration type and address, every voucher with all posting lines, bank instrument detail (cheque, NEFT, UTR), bill references with dates, cost centres and stock. That is why the programme can build the 269SS loan register with the mode of every acceptance, age MSME bills to the day, and split clause 44 by the supplier's registration — from the books, not from a schedule the client typed.
Pair once per machine
Press Connect Tally on the engagement — an 8-character code, valid 10 minutes, single use. No Tally or TaxCorp password ever leaves the office.
Pick company & period
The bridge lists the companies open in TallyPrime and your engagements. Choose both, set the year, press Send to TaxCorp.
Audit on live books
Books land month by month — re-sending a month replaces it. Then run all procedures and let the AI auditor work through the clauses.
What the machine computes, clause by clause
| Clause 8 | Turnover from the Sales Accounts group, the 5% cash-receipt / cash-payment test, the indicative s.44AB clause. |
|---|---|
| Clauses 9, 23 | Capital-account holders; ledgers sharing their PAN, address or surname as suggested specified persons; every transaction with listed persons by nature, for clause 23. |
| Clauses 13–17 | ICDS-sensitive ledgers; stock valuation methods and the s.145A inclusive-method effect; capital-to-stock transfers; income credited outside the P&L; land and building disposals. |
| Clause 18 | The block statement from Fixed Assets ledger movements — additions dated for the 180-day test, deletions, indicative Appendix I rates, cash purchases caught by the proviso to s.43(1); an uploaded register overrides it. |
| Clause 20(b) | Month-wise employee PF/ESI: accrual month from the salary journal, payment date from the next payment, statutory due date, days late. |
| Clause 21 | Every expense ledger with the year's debits and the heads that suggest capital, personal, club, penal or prohibited expenditure; cash payments per payee per day against ₹10,000 / ₹35,000 with 40A(3A) separated; partner interest and the s.40(b)(v) remuneration limit; gratuity, unapproved funds, contingent provisions, exempt income with Rule 8D inputs, CWIP against borrowings. |
| Clauses 21(b), 34 | Section-wise TDS reconciliation: expense heads mapped to 194C/J/I/H/A/Q/R/T/195, per-payee totals against thresholds, deductions traced through the TDS ledgers, monthly deposit timing and interest u/s 201(1A). |
| Clause 22 | Creditor-wise payment timing from Tally's bill allocations (bill date to payment date), balances outstanding beyond 45 days at year-end, Udyam status read from the list you upload. |
| Clauses 25–27 | Write-backs and dormant creditors for s.41; every statutory and provision ledger with opening, paid, incurred, closing and post-year-end payments for s.43B; ITC availed and utilised; prior-period vouchers by reference date and narration. |
| Clause 31 | Lender-wise loans and deposits: opening, accepted, repaid, closing, maximum outstanding, the mode of every acceptance and repayment, PAN and address; ₹2 lakh cash receipts and payments per person, per day and per year; cheque instruments needing account-payee confirmation. |
| Clauses 33, 35, 36A | Donations with cash-mode analysis; item-wise quantities by stock group (opening, purchased, manufactured, sold, consumed, derived closing); loans from closely-held companies. |
| Clauses 40–44 | Gross-profit, net-profit and stock ratios for both years; demand and refund indicators; SFT-reportable cash receipts; the clause 44 break-up of expenditure by the counterparty's GST registration. |
An AI auditor you instruct FLAGSHIP
Each clause carries a default instruction written from the Guidance Note. Replace it with yours — which ledgers to ignore, which parties are related, the firm's view on a grey area — and the AI audits the clause that way, every time. It cites the GN paragraph behind each finding and never states a figure it did not read in the data.
Ask the books FLAGSHIP
"List every cash payment above 10,000 to a transporter by day." "Which creditors on the Udyam list were paid late?" "Audit clause 23 treating these two concerns as related." The assistant queries ledgers, vouchers, parties, stock and your uploads through typed tools, aggregates in code, searches the Guidance Note, and records findings on a clause when you say so.
Deterministic, auditable procedures
Every table and every candidate row is computed by code from the books — the same input gives the same output, and every row opens the voucher behind it. The AI reads the computed data; it never adds the figures up itself.
Data inventory
One panel lists every input the programme knows about — from the books or from documents — whether it is present, which clauses need it and how to obtain it. Red rows are your client request list.
Documents that feed clauses
Upload the Udyam list, partnership deed, TDS returns, 26AS, GST returns, prior-year 3CD, fixed asset register, PF/ESI challans. Each is tagged to the clauses it supports and read by the AI auditor for those clauses; the chatbot can read any of them.
Report assembled from your conclusions
Form 3CD in clause order from the text you settled; Form 3CA/3CB drafted from the observations recorded across clauses; SA 210 engagement letter and SA 580 MRL; Word, PDF, clause-wise Excel workpapers with every decision, and a JSON export of the whole engagement.
Saved engagements
One engagement per client per assessment year — books, procedures, AI audits, decisions, chats and drafts persist. Come back mid-audit, add the missing document, re-run one clause.
Guidance Note research
Alongside the programme, the research desk answers questions on 44AB applicability, turnover limits, the 5% cash test, auditor eligibility (incl. the 2025 ceiling guidelines and the Ethics Guidelines 2026), ICDS and any clause — citing section, paragraph and page of the Revised 2026 edition, its appendices (engagement letter, MRL, working papers, AS applicability, business codes) and the TAQRB observations.
Grounded in the Guidance Note
The ICAI Guidance Note on Tax Audit (Revised 2026 — the eleventh edition, with the TAQRB observations under each clause and all appendices) and the notified Forms 3CA/3CB/3CD as amended by Notification 23/2025 are the ground truth for every clause — omitted clauses stay omitted, new ones are present.
Included with Tax Audit AI: Internal Audit AI — ledger scrutiny and a full internal audit programme on the same books
The Tally Bridge pull that serves the tax audit serves the internal audit too: no second extract, no re-pairing. Open Internal Audit AI with the same access.
Ledger scrutiny
The client's own chart of accounts as a tree — assets, liabilities, capital, income, expenses → their Tally groups → ledgers — with balances, month-by-month bars and scrutiny signals. A ranked list says where to look first.
One ledger, fully
Counterparties, voucher types, who keyed it, largest entries (click to the voucher), bills ageing, same-amount pairs, similar ledgers. Record clear / query / issue, or ask the AI to scrutinise it.
15-area programme
From the ICAI Internal Audit Checklist: O2C, P2P, payroll, fixed assets, inventory, cash & bank, borrowings, tax compliance, expenses, journals & closing, related parties, masters & access, FX, CSR — 75 data procedures over every voucher plus the documents and inquiries to tick.
AI auditor, grounded
Per area, under your instruction: reads the Standards on Internal Audit and the checklist text, the computed data packs and your documents; returns observations as condition / criteria / cause / effect / recommendation with a High-Medium-Low rating and verdicts on every candidate row.
Your decisions
Report or Not an exception on every row and observation; management response, owner and target date; conclude each area Satisfactory / Needs improvement / Unsatisfactory. Ask the books records observations when you say so.
SIA 310 report
Executive summary, scope, methodology with the analytics disclosure, observations by area, limitations, the conformance statement; engagement letter (SIA 120), audit plan (SIA 220); Word, PDF, Excel workpapers, JSON.
Ready to run the most thorough tax audit you have done?
Machine procedures, an AI auditor you instruct, your decisions on every item. Tax Audit AI is an Enterprise-plan feature.