Rule 66 of the Draft Income-tax Rules, 2026 prescribes mandatory audit and reporting requirements for assessees seeking deductions under sections 46, 138, 139, 140, 141, 142, 143, or 144 of the Act. It requires that the accounts of the eligible business for the relevant tax year be audited by an accountant before the specified date under section 63, and the signed and verified audit report must be furnished in Form No. 32 within that timeframe. A separate audit report must be submitted for each undertaking or enterprise claiming deduction, along with its Profit and Loss Account and Balance Sheet prepared as if it were a distinct entity. The Form must also be accompanied by specified supporting documents depending on the section under which deduction is claimed. These include copies of agreements with the Central or State Government or local authorities (sections 46 and 143), Form 10CCB of the 1962 Rules for developers (section 138), SEZ notification (section 139), Inter-Ministerial Board certification (section 140), approval and completion certificates for housing projects along with scheme notification (section 141), approval and completion certificates for housing projects and notification under section 80-IBA for rental housing projects (section 142). The rule thus standardizes audit certification, documentation, and reporting obligations to ensure structured verification before granting specified deductions.
Extract of Rule No. 66 of Draft Income-tax Rules, 2026
Rule 66
Furnishing of audit report for claiming deduction under section 46 or 138 or 139 or 140 or 141 or 142 or 143 or 144 of the Act.
(1) For the purpose of claiming deduction under sections 46 or 138 or 139 or 140 or 141 or 142 or 143 or 144, the accounts of the eligible business for the tax year for which the deduction is claimed shall be audited by an accountant, before the specified date referred to in section 63 and the assessee shall furnish by that date the report of such audit duly signed and verified by such accountant.
(2) The report of the audit of the accounts of an assessee, which is required to be furnished under sub-rule (1), shall be in Form No. 32
(3) A separate report shall be furnished by each undertaking or enterprise of the assessee claiming deduction under section 46 or 138 or 139 or 140 or 141 or 142 or 143 or 144 and shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity.
(4) The Form shall be accompanied by the relevant documents as given in Column D wherever applicable, as per the relevant sections in Column B and the relevant part as mentioned in Column C shall be filled, as specified in the table below, duly certified wherever applicable:
| S. No | Section of Income-tax Act, 2025 | Relevant Part of the Form | Relevant Documents to be attached |
| A | B | C | D |
| 1. | 46 | B1 | Copy of the agreement entered into with the Central Government, State Government, or a local authority |
| 2. | 138 | B2 | Copy of Form No. 10CCB of the Income-tax Rules, 1962 of developer |
| 3. | 139 | B3 | Copy of the notification of the Special Economic Zone (SEZ) |
| 4. | 140 | B4 | Copy of certificate issued by the Inter-Ministerial Board of Certification |
| 5. | 141 | B5 | Copy of approval certificate and completion certificate of the Housing Project, Copy of the notification of the scheme by the Board. |
| 6. | 142 | B6 | Copy of approval certificate and completion certificate of the Housing Project |
| 7. | 142 | B6 | Copy of Notification u/s 80-IBA of the Income-tax Act, 1961 in the case of a Rental Housing Project |
| 8. | 143 | B7 | Copy of the agreement entered into with the Central Government, State Government, or a local authority |
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