Form 3CD Clause 31 Working Paper Format 2026
FORM 3CD CLAUSE 31 — LOANS, DEPOSITS AND SPECIFIED SUMS WORKING PAPER
Assessee: {{client_name}} · PAN: {{client_pan}} · Previous year ended: {{period_end}} · Assessment Year: 2026-27
What the clause asks: particulars of (a) each loan or deposit above the section 269SS limit taken or accepted during the year; (b) each specified sum above that limit taken or accepted; (ba) to (bd) receipts and payments above the section 269ST limit made otherwise than by account payee cheque, draft or electronic clearing; (c) each repayment of a loan, deposit or specified advance above the section 269T limit made during the year; and (d) and (e) repayments of that kind RECEIVED by the assessee otherwise than through the banking modes or by a cheque or draft that is not account payee. Sub-clauses (a), (b) and (c) list every transaction above the limit, including those properly made through a bank; the mode columns then show whether any breached the section.
1. Limits and population
| Section | What it restricts | Limit | Sub-clauses |
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| 269SS | Taking or accepting a loan, deposit or specified sum otherwise than by account payee cheque or draft, electronic clearing or other prescribed electronic mode | ₹20,000 or more — the amount, or the aggregate with the balance already outstanding from that person | 31(a), 31(b) |
| 269ST | Receiving an amount otherwise than by those modes | ₹2,00,000 or more — in aggregate from a person in a day, for a single transaction, or for transactions relating to one event or occasion | 31(ba), (bb), (bc), (bd) |
| 269T | Repaying a loan, deposit or specified advance otherwise than by those modes | ₹20,000 or more — the repayment with interest, or the aggregate held from that person | 31(c), (d), (e) |
- The form says "exceeding the limit"; the sections apply at the limit itself. Set the population filter at ₹20,000 and above, and ₹2,00,000 and above.
- Specified sum / specified advance: money receivable or received, as advance or otherwise, in relation to the transfer of an immovable property, whether or not the transfer takes place.
- Extract every loan, deposit and advance-against-property account — including directors, partners, relatives, group concerns and current accounts that work as loan accounts — and every journal entry posted to them.
2. Clause 31(a) — loans or deposits taken or accepted
| Name, address and PAN / Aadhaar of lender or depositor | Amount taken or accepted ₹ | Nature code (Note 1) | Squared up during the year? (Y/N) | Maximum amount outstanding at any time in the year ₹ | By cheque, draft or electronic clearing through a bank account? (Y/N) | If by cheque or draft — account payee? (Y/N) |
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3. Clause 31(b) — specified sums taken or accepted
| Name, address and PAN / Aadhaar of the person from whom received | Amount of specified sum ₹ | Nature code (Note 1) | By cheque, draft or electronic clearing through a bank account? (Y/N) | If by cheque or draft — account payee? (Y/N) |
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Particulars at (a) and (b) need not be given by a Government company, a banking company or a corporation established by a Central, State or Provincial Act.
4. Clauses 31(ba) to 31(bd) — section 269ST receipts and payments
| Sub-clause | Name, address and PAN / Aadhaar of payer or payee | Nature of transaction | Amount ₹ | Date | Basis of aggregation (day / single transaction / event) |
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| (ba) Receipt otherwise than by cheque, draft or electronic clearing | | | | | |
| (bb) Receipt by cheque or draft that is not account payee | | | | | |
| (bc) Payment otherwise than by cheque, draft or electronic clearing | | | | | |
| (bd) Payment by cheque or draft that is not account payee | | | | | |
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- Section 269ST binds the recipient. Sub-clauses (bc) and (bd) report the assessee’s own payments so that the department can identify the other party’s receipt.
- Apply all three tests: total cash from one person in a day; total for one transaction even if received on different days; total for one event or occasion (for example, a wedding or a single sale order billed in parts).
- These particulars are not required for receipts by, or payments to, the Government, a banking company, a post office savings bank or a co-operative bank, for transactions of the kind covered by section 269SS, or for persons notified by the Central Government.
5. Clause 31(c) — repayments made by the assessee
| Name, address and PAN / Aadhaar of payee | Amount of repayment ₹ | Nature code (Note 1) | Maximum amount outstanding at any time in the year ₹ | By cheque, draft or electronic clearing through a bank account? (Y/N) | If by cheque or draft — account payee? (Y/N) |
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6. Clauses 31(d) and 31(e) — repayments received by the assessee
| Sub-clause | Name, address and PAN / Aadhaar of the person who repaid | Amount received ₹ | Date | Evidence ref. |
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| (d) Received otherwise than by cheque, draft or electronic clearing | | | | |
| (e) Received by cheque or draft that is not account payee | | | | |
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Particulars at (c), (d) and (e) need not be given for repayment of a loan, deposit or specified advance taken or accepted from the Government, a Government company, a banking company or a corporation established by a Central, State or Provincial Act.
7. Note 1 — nature codes (from 1 April 2025)
| Code | Nature of amount, receipt or repayment | Code | Nature of amount, receipt or repayment |
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| A | Cash payment | G | Conversion of assets |
| B | Cash receipt | H | Conversion of liabilities |
| C | Payment through non-account-payee cheque | I | Journal entry [Debit] |
| D | Receipt through non-account-payee cheque | J | Journal entry [Credit] |
| E | Transfer of asset | K | Any other mode [Debit] |
| F | Transfer of liability | L | Any other mode [Credit] |
- The codes make non-cash entries visible. A loan created or settled by journal entry, by transfer of an asset or liability, or by conversion (for example, a trade payable converted into an unsecured loan) is now reported with its own code instead of disappearing under "others".
- For every entry coded E to J, record the business reason and the documents behind it. Whether such an entry breaches section 269SS or 269T depends on the facts and on case law; the auditor reports the particulars and does not rule on penalty.
- There is no separate code for a banking-channel transfer in the notified list. Follow the utility’s dropdown for those rows and note the choice made.
8. Evidence to obtain
- Ledger accounts and confirmations for every lender, depositor and borrower-side party, with PAN; day-wise running balances to find the maximum outstanding.
- Bank statements matched to each acceptance and repayment; cheque images or bank confirmation for account payee crossing where it matters.
- Cash book, sorted by party and date, for receipts and payments of ₹2,00,000 and above in aggregate; sales invoices and receipts for the same customers to test the transaction and event rules.
- Agreements to sell, booking forms and receipts for advances relating to immovable property, including cancelled deals and refunds.
- Journal register for the loan and party accounts, with board resolutions, tripartite agreements or assignment letters supporting transfers and conversions.
- Management representation on completeness of loans, deposits and specified sums and on the mode of each transaction.
9. Common errors
- Listing only cash loans. Sub-clauses (a), (b) and (c) need every loan, deposit and repayment at or above the limit, with the mode shown.
- Ignoring the aggregate rule: a ₹15,000 cash loan from a person who already has ₹10,000 outstanding is within section 269SS.
- Leaving out partners’ and directors’ current accounts, inter-corporate deposits, and trade advances that have turned into loans.
- Reporting the year-end balance as "maximum amount outstanding".
- Missing sub-clauses (d) and (e) where the assessee is the lender and is repaid in cash.
- Splitting one sale or one event into several cash receipts below ₹2,00,000 and concluding that section 269ST does not apply.
- Stating that all cheques were account payee without evidence. Where it cannot be verified, say so in the clause.
10. Flow to the return of income
Clause 31 does not change the computation of income; nothing from it is added back in the return. Its consequence is penalty exposure: a contravention of section 269SS, 269ST or 269T attracts a penalty equal to the amount involved under section 271D, 271DA or 271E respectively, unless the assessee shows reasonable cause under section 273B. Because the data is transaction-level and carries PAN, expect it to be matched against the other party’s reporting. Brief the client on each reported contravention and keep the reasonable-cause facts on file.
Conclusion: transactions reported — 31(a) ____ ; 31(b) ____ ; 31(ba) to (bd) ____ ; 31(c) ____ ; 31(d) and (e) ____. Transactions not through the prescribed modes: ____________. Limitations on verification stated in the report: ____________.
Prepared by: {{prepared_by}} Reviewed by: Date: 1 October 2026
