Clause 34-Form 3CD Annex

ExpressTDS || Clause 34-Form 3CD Annex (DIY)


Process to Generate Clause 34-Form 3CD Annex Report in ExpressTDS

In Express TDS, Clause 34 of Form 3CD relates to the compliance reporting of Tax Deducted at Source (TDS) for audit purposes under the Income Tax Act of India. This clause requires detailed information on TDS compliance as part of the tax audit report (Form 3CD) filed by taxpayers whose accounts are audited under Section 44AB.
 
  1. Clause 34(a) asks whether the taxpayer is required to deduct or collect tax under the provisions of Chapter XVII-B (TDS) or Chapter XVII-BB (TCS) of the Income Tax Act. If applicable, it requires reporting details such as the Tax Deduction and Collection Account Number (TAN), the total amount deducted, the amount deposited, and whether the TDS/TCS was deposited on time.
  2. Clause 34(b) focuses on cases where the taxpayer is liable to deduct or collect tax but has failed to do so. It requires reporting any shortfall in TDS/TCS along with applicable interest and penalties.
  3. Clause 34(c) asks whether any payment made to a non-resident is liable for withholding tax under Section 195. If so, it requires reporting details of such payments, the tax deducted, and remittance details.

Step 1: Log In to ExpressTDS
  1. Visit the ExpressTDS portal and log in using your username and password.
  2. Navigate to the Deductor Master page, where all the deductors are listed.
Step 2: Access Clause 34
  1. Click on the Clause 34 Form 3CD Annex option to open the Clause 34 section.
      
  1. In the TAN Wise PAN Info tab, use the search bar to enter the PAN of the deductor.
      
  1. Press Enter to fetch the deductor details.
Step 3: Sync Deductor Data
  1. Ensure that details such as TAN, deductor name, ITD password, TRACES username and password are correctly reflected.
      
  1. Click on the Sync button to fetch data from TRACES:
    1. A captcha window will appear. Enter the captcha code and click Proceed.
      
            
  1. The sync process will automatically fetch TDS-related data, including:
    1. TDS deducted, deposited, and whether it was done on time or late.
    2. This data will populate Clause 34(a), Clause 34(b), and Clause 34(c).
Step 4: Verify Data in Clause 34
  1. To confirm the fetched data:
    1. Click on any Clause, e.g., Clause 34(b).
    2. Verify the displayed details for accuracy.
      

Step 5: Handle Missing Data
  1. If the Sync process does not fetch deductor data:
    1. Navigate to the TAN Form – Quarter Summary tab.
    2. Select the Raise Manually option to request data for a specific form type and quarter from TRACES.
      
  1. Once the request is processed, the Clause 34 data will be automatically fetched and reflected.
Step 6: Download Clause 34 Data
  1. After verifying or updating data in Clause 34, click the Download icon to save the report.
  2. Ensure the data is accurate and matches the compliance requirements for the audit.


To raise a request for a particular form type and quarter, click Raise Manually.
Notes
Note: When you Raise Manually a request to fetch deductor data from Traces, on submitting the request it will automatically fetch the Clause 34 data from Traces and will reflect the deductor information in Clause 34(a), Clause 34 (b), Clause 34 (c).
  1. To know how to raise request manually , see Raise Request in Express TDS.
  2. After raising the request at Traces, to check if the deductor data is shown in Clause 34, click on any of the Clause from Clause 34 (a), Clause 34 (b), Clause 34(c). For Example – Clause 34(b).

    This opens up the following window.

      
  1. Click on Download icon to get data  icon provided.
      
​
By following this detailed process, you can efficiently generate, sync, and verify Clause 34 (Form 3CD) data using ExpressTDS for audit purposes.

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