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. Made under s.46, s.63, s.138, s.139, s.140, s.141, s.142, s.143, s.144, s.515 of the Income-tax Act, 2025.
Rule 66 gives effect to Section 46, Section 63, Section 138, Section 139, Section 140, Section 141, Section 142, Section 143, Section 144 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.
Sub-rule (1) requires that, for a deduction claimed under section 46, 138, 139, 140, 141, 142, 143 or 144, the accounts of the eligible business for the tax year be audited by an accountant as defined in section 515(3)(b) before the specified date referred to in section 63, and that the assessee furnish the report of that audit, duly signed and verified by the accountant, by that date.
Sub-rule (2) prescribes the report in Form No. 32. Sub-rule (3) requires a separate report for each undertaking or enterprise claiming the deduction, accompanied by the profit and loss account and balance sheet of that undertaking or enterprise as if it were a distinct entity.
Sub-rule (4) sets out, in a Table, the part of Form No. 32 to be filled and the documents to be attached for each section: for section 46, Part B1 with a copy of the agreement entered into with the Central Government, State Government or a local authority; for section 138, Part B2 with a copy of the developer's Form No. 10CCB of the Income-tax Rules, 1962 made under the Income-tax Act, 1961 as it existed prior to its repeal; for section 139, Part B3 with a copy of the notification of the Special Economic Zone; for section 140, Part B4 with a copy of the certificate issued by the Inter-Ministerial Board of Certification; for section 141, Part B5 with a copy of the approval certificate and completion certificate of the Housing Project and a copy of the notification of the scheme by the Board; for section 142, Part B6 with a copy of the approval certificate and completion certificate of the Housing Project, and, in the case of a Rental Housing Project, a copy of the notification issued under section 80-iba of the Income-tax Act, 1961 as it existed prior to its repeal; and for section 143, Part B7 with a copy of the agreement entered into with the Central Government, State Government or a local authority. The documents in column D are to be attached wherever applicable and duly certified wherever applicable.
Each of these sections gives a deduction measured on the profits of a particular business, undertaking or enterprise, and none of them can be verified from the assessee's consolidated accounts. The rule requires the eligible business to be audited separately and reported in a single prescribed form, with the supporting approval, notification or agreement attached, so that the claim can be checked against the document that created the eligibility. Tying the deadline to the specified date in section 63 keeps the audit report ahead of the return.
| What | Figure | The condition on it | Where |
|---|---|---|---|
| Date by which the audit must be completed and the report furnished | The specified date referred to in section 63 | Audit to be done before that date and the report furnished by that date; the rule does not itself state a date, it points to section 63 | Sub-rule (1) |
| Number of reports | One for each undertaking or enterprise | Each report accompanied by the profit and loss account and balance sheet of that undertaking or enterprise as if it were a distinct entity | Sub-rule (3) |
The rule sets no date of its own: it borrows the specified date referred to in section 63, so the audit and the report move with that date and not with the return due date. Two separate obligations sit in sub-rule (1) — the audit must be completed before the specified date, and the report must be furnished by it. Sub-rule (3) forbids a consolidated report where more than one undertaking or enterprise claims: each needs its own Form No. 32 with its own profit and loss account and balance sheet drawn as if it were a distinct entity. The Table in sub-rule (4) decides which part of the form is filled and which document is attached, and section 142 has two entries, so a Rental Housing Project carries the section 80-iba notification in addition to the approval and completion certificates.
A company runs two eligible undertakings, one claiming under section 139 in a Special Economic Zone and one claiming under section 143. Sub-rule (3) requires two separate Form No. 32 reports, each with that undertaking's own profit and loss account and balance sheet; the first fills Part B3 and attaches a copy of the Special Economic Zone notification, and the second fills Part B7 and attaches a copy of the agreement entered into with the Government or local authority. Both must be audited before, and furnished by, the specified date referred to in section 63.
In the Form No. 32 filed ahead of the return for any year in which one of these deductions is claimed, and in any assessment where the deduction is examined against the attached agreement, notification or certificate.
the accounts of the eligible business for the tax year for which the deduction is claimed shall be audited by an accountant as defined in section 515(3)(b), before the specified date referred to in section 63
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.
