Rule 137 — Form of report for computation of book profit of companies. Made under s.206, s.515 of the Income-tax Act, 2025.
Rule 137 gives effect to Section 206 and Section 515 of the Income-tax Act, 2025. A rule cannot go beyond the section it serves: where the two seem to differ, the section governs.
The rule prescribes the form for one report. The report of an accountant as defined under section 515(3)(b), required to be furnished by the assessee under section 206(1)(s), shall be made in Form No. 66.
Section 206(1)(s) requires an accountant's report on the computation of book profit but does not prescribe its shape. The rule supplies the form, and by tying the reporting accountant to the definition in section 515(3)(b) it also settles who may sign it.
The report is the accountant's, not the company's: the person making it must answer the definition in section 515(3)(b), so a report from an adviser outside that definition does not satisfy the requirement. The rule prescribes only the form; the obligation to furnish the report, and the consequence of not furnishing it, sit in section 206(1)(s). The computation the form carries is of book profit, which means the figures in it are drawn from the accounts as adjusted under the Act, not from the taxable income computation.
A company whose liability is worked out by reference to book profit obtains a report in Form No. 66 from an accountant as defined in section 515(3)(b) setting out the computation, and furnishes it as required by section 206(1)(s) for the tax year.
A reader meets it as the accountant's report accompanying the return of a company to which section 206(1)(s) applies.
The report of an accountant as defined under section 515(3)(b), which is required to be furnished by the assessee under section 206(1)(s) shall be made in Form No. 66.