Form explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Form No. 100 is the report an accountant gives after the Assessing Officer directs an assessee to get its accounts audited in the course of assessment. It has a short audit report and an annexure of 41 rows that records the particulars the accountant has examined. This guide explains the form as printed in the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026.
Rule 171(1) says the report of audit required to be furnished under section 268(5)(i) "shall be in Form No. 100". The time for the report is fixed by the section, not the rule: the Assessing Officer specifies the period, which can be extended, but in all not more than six months from the end of the month in which the direction is received. The report is given by the accountant nominated by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.
The direction under section 268(5)
Section 268 of the Income-tax Act, 2025 deals with inquiry before assessment. Under sub-section (5), if the Assessing Officer, having regard to the nature and complexity of the accounts, their volume, doubts about their correctness, the multiplicity of transactions or the specialised nature of the business, and the interests of revenue, thinks it necessary, he may after giving a reasonable opportunity of being heard, and with previous approval of the senior authority, direct the assessee to get the accounts audited by an accountant, or the inventory valued by a cost accountant, or both. The accountant is nominated by the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner (sub-section (6)). The report is furnished to the Assessing Officer within the period he specifies (sub-section (8)); extensions are possible, but the total may not exceed six months from the end of the month in which the direction is received (sub-sections (9) and (10)). The expenses are determined under guidelines and paid by the Central Government (sub-section (11)). See sections 268 to 272 for the full text.
Rule 171(1) names the form, and the companion rule 171(2) names Form No. 101 for the inventory valuation report. The rules on verification, notices and audit expenses are discussed in rules 168 to 172. The ordinary tax audit report is a different form, covered in Form No. 26. The inventory report is in Form No. 101.
If an assessment notice has been followed by a direction to get the accounts audited, our books of accounts compliance team can help you prepare the books and the supporting records for the nominated accountant.
The report
The report comes first, then the annexure. The accountant states, giving name and Permanent Account Number, that the balance sheet of the assessee as at the stated date and the profit and loss account for the year ended on that date have been examined and are or are not in agreement with the books maintained at the head office and branches. The accountant states that all the information and explanations needed for the audit were obtained as far as the signatory knows and believes, and that proper books of account have or have not been kept at the head office and the branches visited, and proper returns have or have not been received from branches not visited, subject to comments. The accounts are then stated to give or not give a true and fair view of the state of affairs at the balance sheet date and of the profit or loss for the accounting year. Finally the accountant says the prescribed particulars, and such other particulars as the Assessing Officer required by the stated order number and date, are annexed and in the accountant's opinion true and correct.
The signature block gives name, member registration number, PAN, UDIN if any, name of the proprietorship or firm and firm registration number.
The annexure at a glance
Part A of the annexure records the name, address, PAN, email ID, contact number and tax year of the assessee (rows 1 to 6). Part B is the statement of particulars, rows 1 to 41, grouped below.
| Rows | Subject |
|---|---|
| 1 to 6 | Whether books are maintained under section 62; list of books and addresses; books and documents examined; method of accounting; any change from the preceding tax year and its effect on profit or loss |
| 7 to 13 | Method of valuation of opening and closing stock (raw materials, stores, work-in-progress, stock-in-trade) and any change with its effect; full quantitative details for manufactured items (raw materials, finished products, by-products, work-in-progress) and for principal goods traded; physical verification; discrepancies |
| 14 to 16 | Expenditure on advertisement, guest house, travelling and entertainment; whether it exceeds the amount admissible; details if so |
| 17 and 18 | Where the assessee is a firm: payments to each partner by way of interest, salary, bonus, commission and remuneration, share in profit, and capital balance on 31st March; where it is a company: expenditure that resulted in remuneration, benefit or amenity to a director, a person with a substantial interest or a relative, and assets used for their benefit |
| 19 to 24 | Amounts not deductible under section 29 or 36 (excessive payments, payments above Rs 10,000, or Rs 35,000 for plying, hiring or leasing of goods carriages, made otherwise than through the specified banking or online mode, and provision for gratuity); hundi borrowings and repayments; proforma credits, drawbacks, refunds of duties and Input Tax Credit under GST; expenditure or income of an earlier year in the current year's profit and loss account; contingent liabilities debited |
| 25 to 32 | Loans, deposits and specified sums taken or accepted beyond the limit in section 185(1); receipts and payments beyond the limit in section 186(1) otherwise than through specified modes; repayments beyond the limit in section 188(1); each with details by nature of transaction using the codes in Note 7 |
| 33 to 38 | Whether the assessee is required to deduct or collect tax under Chapter XIX-B; details by TAN of tax deducted or collected, shortfalls and amounts not deposited; whether a statement of tax deducted or collected is required, its type, due date, date furnished and unreported transactions; interest payable under section 398(3)(a) and its payment |
| 39 and 40 | Loan or overdraft from a bank or financial institution: maximum outstanding, security and guarantor details |
| 41 | Taxes (direct and indirect) and duties paid during the tax year, with any discrepancy noticed in dates and entries |
The Notes say that the report has to be given by the accountant nominated under section 268(5)(i) (Note 4); that where a matter is answered in the negative or with a qualification the reasons are to be stated (Note 5); that annexures A-1 (details of a change in the method of accounting) and A-2 (a note on expenditure exceeding the admissible amount) go with rows 6 and 16 (Note 6); and that the code for the nature of an amount, receipt, payment or repayment in rows 26 to 32 runs from A for cash payment to L for any other mode (credit), as Note 7 lists. Amounts are in rupees (Note 8).
One printed slip affects row 40: it asks for the loan or overdraft details "if answer to 35 is yes", although the question it follows is the loan question in row 39 (row 35 is about the statement of tax deducted or collected). Check the cross-reference with the form on the portal.
An example
Ratnagiri Fabrics Private Limited receives an order from its Assessing Officer, with the approval of the Commissioner, directing a special audit because of the volume and complexity of its accounts. The Commissioner nominates an accountant, who completes the report with Part B. For stock, the accountant records the valuation method for raw materials and stores, and fills the quantitative tables. For expenses, the accountant fills rows 14 to 16. Because the company is under a statutory deduction obligation, rows 33 to 38 list each TAN with the tax deducted and the statements furnished.
Need help with an audit direction?
An audit direction under section 268(5) sets its own timetable and the report covers a long list of particulars. Our books of accounts compliance team can help you organise the records, respond to the accountant's queries and keep to the period set by the Assessing Officer.
Key takeaways
- Form No. 100 is the audit report under section 268(5)(i), required by rule 171(1).
- It is given by an accountant nominated by the senior tax authority, not chosen by the assessee.
- The period is fixed by the Assessing Officer within the six-month ceiling in section 268(10); the rule prints no separate date.
- Part B has 41 rows covering books, stock, expenses, loans, receipts, tax deducted or collected and taxes paid.
- Negative or qualified answers must carry reasons, as Note 5 says.
Read next
- Rules 168 to 172: verification, notices and audit expenses
- Form No. 26: the tax audit report, Parts A, B and C
- Form No. 119: application to the Dispute Resolution Committee
- Form No. 101: inventory valuation report under section 268(5)
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 4 October 2026. It explains the words of the forms and rules only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.