Income-tax Form 6: Audit Report for Preliminary Expenses or Mineral Prospecting Deduction

Form 6 under the Income-tax Act, 2025 is an audit report required for assessees (other than companies or co-operative societies) claiming deductions under Sections 44 and 51 relating to preliminary/project expenditure and mineral prospecting or development. It must be certified by a Chartered Accountant and filed electronically at least one month prior to the due date of filing the return of income. The form ensures audit-based verification of expenditure, enhances transparency, and enables system-based validation of deduction claims. It includes details of financial statements, qualifying expenditure, project or mineral-related data, and audit credentials such as UDIN and FRN. Filing requires submission of supporting documents like audited accounts, invoices, and project records. Non-filing may result in disallowance of deductions and potential penalties. The form strengthens compliance through digital verification, structured reporting, and improved audit traceability, thereby supporting accurate deduction claims and safeguarding revenue.

Income Tax Form 6 – FAQs on Audit Report for claiming deduction for certain preliminary expenses under section 44 or expenditure for prospecting certain minerals under section 51 of Income Tax Act, 2025

Form of Application under Section 44(6)/51(7) of the Income-tax Act, 2025

1. What is FORM 6?

Ans: Form 6 is an audit report required to be furnished by an eligible assessee claiming deductions under Section 44 (preliminary and project-related expenditure) or Section 51 (mineral prospecting and development expenditure) of the Income-tax Act, 2025. The Form is required to be certified by an accountant and submitted electronically.

2. What is the purpose of FORM 6?

Ans: The purpose of Form 6 is to:

• Certify qualifying expenditure eligible for deduction under Section 44 or Section 51
• Ensure audit-based verification of eligible expenditure
• Enable system-based validation of deductions claimed
• Improve accuracy, transparency, and revenue protection
• Provide a statutory audit trail for capital and mineral-related claims

3. Who is required to file FORM 6?

Ans: Any assessee other than a company or a co-operative society claiming deduction under:

• Section 44 — Preliminary / project-related expenditure, OR
• Section 51 — Mineral prospecting / development expenditure must furnish Form 6, duly certified by an accountant.

4. Who is authorised to certify FORM 6?

Ans: Form 6 must be certified by an accountant as defined under Section 515(3)(b) of the

Income-tax Act, 2025, i.e., a Chartered Accountant in practice (with some exceptions).

5. What is the due date for filing FORM 6?

Ans: Form 6 must be filed at least one month prior to the due date for furnishing the return of

income for the relevant Tax Year under Section 263(1) of the Income-tax Act, 2025.

6. What is the frequency of filing FORM 6?

Ans: Form 6 is required to be filed once for first Tax Year in which a deduction under Section 44 or Section 51 is claimed.

7. What information is required in FORM 6?
Ans: Form 6 contains:

(a) Audit Report Section

• • Examination of financial statements
  • True and fair view declaration
  • Accountant details, UDIN, and Firm Registration Number (FRN)

(b) Section A — Deduction under Section 44

• • Business commencement details
  • Project / unit extension details
  • Qualifying expenditure (feasibility, project report, market survey, engineering services)
  • Legal charges
  • Project cost and eligible deduction computation

(c ) Section B — Deduction under Section 51

• • Mineral / group details
  • Commercial production Tax Year
  • Year-wise qualifying expenditure
  • Audit date and expenditure amount

8. What documents are required for filing FORM 6?

Ans: Audited financial statements

• Project / feasibility / engineering reports
• Bills and invoices for qualifying expenditure
• Asset and project cost records
• Mineral prospecting and development records (if applicable)
• Supporting working papers for audit verification

9. What is the process flow for filing FORM 6? Ans:

• Assessee compiles financial statements and expenditure records
• Assessee appoints the Accountant on the e-Filing portal for Form 6.
• Accountant certifies the Form 6
• Accountant uploads Form 6 via their CA login.
• Assessee reviews the uploaded Form under the ‘Pending Actions’ worklist.
• Assessee accepts and verifies the Form using DSC/EVC to complete the filing.
• Electronic acknowledgement is generated upon successful verification by the Assessee.
• UDIN has to be generated and updated on the filing portal by the CA

10. Is UDIN mandatory in FORM 6?

Ans: Yes. Unique Document Identification Number (UDIN) is mandatory and must be generated by the certifying accountant and quoted in Form 6.

11. Is Digital Signature Certificate (DSC) required for filing FORM 6?

Ans: Yes. Form 6 must be verified and submitted using DSC of the authorised signatory / accountant.

12. Can FORM 6 be filed offline?

Ans: No. Form 6 can only be filed electronically through the Income-tax e-Filing Portal.

13. What happens if FORM 6 is not filed?

Ans: Failure to furnish Form 6 may result in:

• Disallowance of deduction under Section 44 / Section 51
• Additional scrutiny or verification
• Possible penal consequences under applicable provisions

14. How does FORM 6 improve compliance?

Ans: Form 6 strengthens compliance by:

• Introducing audit-backed verification
• Enhancing data accuracy and traceability
• Enabling system analytics and risk assessment
• Reducing incorrect or inflated deduction claims

15. Is FORM 5 linked with FORM 6?

Ans: Yes. Form 6 requires confirmation of whether Form 5 has been filed under Rule 27 if applicable.

16. What are key benefits of FORM 6?

Ans: Improved audit discipline

• Better deduction governance
• Stronger revenue safeguards
• Alignment with digital and faceless compliance framework

Overall Summary

Ans: Form 6 represents audit-certified deduction reporting under the Income-tax Act, 2025, enhancing credibility, transparency, and data integrity, while ensuring a structured and technology-driven compliance process.

Guidance Note on Income Tax Form 6 –  Audit Report for claiming deduction for certain preliminary expenses under section 44 or expenditure for prospecting certain minerals under section 51 of Income Tax Act, 2025

Form 6 is an Income-tax form used by an assessee claiming deduction under Section 44 or Section 51 of the Income-tax Act, 2025, and is required to be furnished as an audit report certified by an accountant, as mandated under section 44(6) or section 51(7).

Purpose of Form 6: The primary purpose of filing Form 6 is to:

• Furnish an audit report after examination of accounts
• Support claims of deduction under Section 44 (preliminary/project expenditure)
• Support claims of deduction under Section 51 (mineral prospecting and development expenditure)
• Ensure audit-based verification of project costs and expenditure
• Strengthen compliance, transparency, and revenue safeguards

Filing Requirements

i. Who can file: Any assessee claiming deduction under Section 44 or Section 51 of the Income-tax Act, 2025, other than a company or a co-operative society

ii. Who must certify the Form: Form 6 must be certified by an accountant as defined under Section 515(3)(b) of the Income-tax Act, 2025 (i.e., a Chartered Accountant in practice with some exceptions).

iii. When to file: Form 6 must be filed one month prior to the due date for furnishing the return of income for the relevant Tax Year under Section 263(1) of the Income-tax Act, 2025.

iv. How to file: The Form must be filed electronically through the Income-tax e-Filing Portal and verified using a Digital Signature Certificate (DSC).

Information Required in Form 6

The Form requires the following key information:

(i) Audit Report Section

• • Examination of Accounts , Balance Sheet and Profit & Loss Account
  • Declaration of true and fair view
  • Accountant’s Membership Number
  • Unique Document Identification Number (UDIN)
  • Firm Registration Number (FRN)

(ii) Section A — Deduction under Section 44
Part A — Particulars of the Assessee

• • Name
  • PAN
  • Address
  • Status
  • Email ID
  • Contact number
  • Tax Year

Part B — Business and Deduction Details

• Date of commencement of business
• Nature of deduction (extension or new unit)
• Date of commencement of production/operation
• Qualifying expenditure (feasibility report, project report, market survey, engineering services)
• Legal charges
• Project cost details
• Computation of eligible deduction
• Confirmation of filing Form 5 under Rule 27, if applicable

(iii) Section B — Deduction under Section 51
Part A — Particulars of the Assessee

• • Name
  • PAN
  • Address
  • Contact details
  • Tax Year

Part B — Mineral and Expenditure Details

• Name of mineral(s)
• Tax Year of commercial production
• Year-wise qualifying expenditure
• Audit date
• Amount of expenditure eligible under Section 51(3) and Section 51(4)

Frequency and Due Date

• Frequency: Form 6 is required to be filed for the first tax year in which the deduction under this section is claimed, under Section 44 or Section 51.
• Due Date: The Form must be furnished one month prior to the due date of filing the return of income for the relevant Tax Year under Section 263(1) of the Income-tax Act, 2025.

Documents Required

• Audited financial statements
• Project / feasibility / engineering reports
• Bills and invoices for qualifying expenditure
• Asset and project cost records
• Mineral prospecting and development records (where applicable)
• Supporting audit working papers
• Proof of PAN and taxpayer identity

Process Flow of Filing

• Assessee compiles financial statements and expenditure records
• Assessee appoints the Accountant on the e-Filing portal for Form 6.
• Accountant certifies the expenditure and the claim as per FN 006
• Accountant uploads Form 6 via their CA login.
• Assessee reviews the uploaded form under the ‘Pending Actions’ worklist.
• Assessee accepts and verifies the Form using DSC/EVC to complete the filing.
• Electronic acknowledgement is generated upon successful verification by the Assessee.
• UDIN has to be generated and updated on the filing portal by the CA

Key Points to Note

• Filing of Form 6 is mandatory for claiming deduction under Section 44 or Section 51
• UDIN is mandatory for audit authentication
• DSC verification is required for valid submission
• Non-filing or incorrect filing may result in disallowance of deduction
• Year-wise expenditure details must be accurately reported where expenses span multiple Tax Years

Outcome Details

• Allowability of Deduction: Form 6 serves as the statutory basis for allowing deductions under Sections 44 and 51.
• System-Based Verification: The filed Form is subject to automated risk checks and backend verification.
• Revenue Assurance: Audit certification strengthens the integrity of deduction claims and minimizes litigation risk.

Challenges and Solutions

The revised Form 6 is designed as a smart e-Form aimed at enhancing compliance through:

• Auto-population of taxpayer details
• Real-time validations and structured data fields
• Standardization of address and identity information
• Integration with audit and deduction workflows

Common Changes across Forms:

• Use of “Tax Year” replacing earlier year references
• Updated section references under the Income-tax Act, 2025
• Strengthened digital verification and audit traceability