Form 26 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.
Part D of Form 26 is the statement of particulars under section 63 that sits behind the tax audit report. Its first four heads, A to D, run from row 9 to row 34: general information, books of account and method of accounting, particulars of receipt or income, and particulars of expenses. This article describes them as printed, as per 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. Later notifications should be checked.
Rule 47 requires the particulars under section 63 in Parts C and D of Form 26. Heads A to D of Part D carry 26 numbered rows (9 to 34), mostly Yes/No questions with a "refer Schedule" pointer or an amount. The Schedules are covered in our articles on the first half and the second half of the form.
The form, the rule and the section
Form 26 is named by rule 47, which puts the report in Part A or Part B and the particulars in Parts C and D; see rule 47 on the audit report in Form 26. It is made for section 63, explained in section 63 on tax audit limits and the specified date. The report and Part C are in Form 26, Parts A, B and C; heads E to K are in the next article.
The form cites many sections of the Act; this article quotes them as printed and explains none. If you are preparing or checking these particulars against the books, our books of accounts compliance team can support the working papers.
Head A: General information (rows 9 to 12)
| Row | What is asked |
|---|---|
| 9 | Relevant provision under which the audit was conducted (select one): total sales, turnover or gross receipts of business exceeding the specified limits under section 63; gross receipts in profession exceeding the specified limits under section 63; profits and gains from a specified business or profession referred to in section 58(2) or 61(2) claimed to be lower than the deemed profits; or provisions of section 58(8) applicable. See section 58 and section 61 |
| 10 | Whether the assessee has opted for taxation under section 199, 200, 201, 202, 203 or 204 (Yes/No). See section 200 and section 202 |
| 11(a) | For a firm or association of persons: names of partners or members, Permanent Account Numbers and profit-sharing ratios, in a table |
| 11(b) | Whether any change in partners, members or profit-sharing ratio since the last date of the preceding tax year (Yes/No; if yes, Schedule - General Information) |
| 12(a) | Nature of all businesses or professions carried on in the tax year (Schedule - General Information) |
| 12(b) | Whether there is any change in the nature of business or profession (Yes/No; if yes, the Schedule) |
| 12(c) | Whether any cost audit was carried out (Yes/No; if yes, attach a copy of the report and state the impact of disqualification or disagreement on any matter, item, value or quantity in the Schedule) |
| 12(d) | Table of particulars for the tax year and the preceding tax year: total turnover; gross profit to turnover; net profit to turnover; stock-in-trade to turnover; material consumed to finished goods produced |
Head B: Books of account and method of accounting (rows 13 to 19)
| Row | What is asked |
|---|---|
| 13 | List of books of account maintained, including those kept in a computer system |
| 14(a) | Address or addresses where the books are maintained, with the list of books at each address |
| 14(b) | The accounting software used for books kept in a computer system |
| 14(c) | Details of any cloud or other software used to store books, with location (internet protocol address and country) |
| 14(d) | Whether the provisions of rule 46(8) have been complied with (Yes/No) |
| 14(e) | If yes, the address of the location of the backup server in India |
| 15(a) | Method of accounting in the tax year: mercantile or cash |
| 15(b) | Whether there was any change in the method since the preceding tax year (Yes/No; if yes, Schedule - Accounting Information) |
| 16(a) | Method of valuation of inventory for finished goods and raw material: at cost, at net realisable value, or lower of cost and net realisable value |
| 16(b) | In case of deviation from the method prescribed under section 277, whether any adjustment to profit or loss is required (Yes/No; if yes, Schedule - Accounting Information). See sections 276 to 278 |
| 17 | Whether any adjustment is required for complying with the Income Computation and Disclosure Standards notified under section 276(2) (Yes/No; Schedule) |
| 18 | Whether any disclosure is required as per those Standards (Yes/No; Schedule) |
| 19 | Whether the profit and loss account includes any profits and gains assessable on a presumptive basis (Yes/No; Schedule) |
Head C: Particulars of receipt or income (rows 20 to 25)
| Row | What is asked (Yes/No unless stated) |
|---|---|
| 20 | Amount chargeable under the head income from other sources as per section 92(2)(m) but not credited to the profit and loss account (if yes, Schedule - Computation of receipt/income) |
| 21 | Other amounts chargeable to income-tax but not credited to the profit and loss account (Schedule) |
| 22 | Any capital asset converted into stock-in-trade (Schedule) |
| 23 | Any land or building transferred for a consideration less than the stamp duty value referred to in section 53 or 78 (Schedule) |
| 24 | Any amount borrowed through a negotiable instrument or on a hundi which is deemed income as per section 106 (if yes, amount) |
| 25 | Any amount repaid, including interest, through a negotiable instrument or on a hundi, deemed income as per section 106 (if yes, amount) |
Head D: Particulars of expenses (rows 26 to 34)
| Row | What is asked (Yes/No; most say "if yes, Schedule - Computation of Expenses") |
|---|---|
| 26 | Amount of deduction inadmissible for expenditure relating to income that does not form part of total income, even if not accrued or received (if yes, amount) |
| 27 | Amount debited to the profit and loss account, to the extent disallowable: (a) under sections 29, 31 and 32; (b) under section 29(1)(e); (c) under section 34; (d) under section 35 |
| 28 | Any penalty levied under any law in force in or outside India |
| 29 | Whether any payment has been made or is to be made to a specified person as mentioned in section 36(3) |
| 30 | Amount debited to the extent disallowable under section 36(4) |
| 31 | Amounts debited in a preceding tax year deemed to be income under section 36(5) for this tax year |
| 32 | (a) Amounts debited, to the extent disallowable as per section 37(2)(a) to (f); (b) amounts disallowed under those clauses in a preceding tax year but allowable in this tax year |
| 33 | (a) Interest not allowable under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006, to the extent debited (if yes, amount); (b) amount disallowable under section 37(2)(g); (c) amount disallowed under section 37(2)(g) in a preceding tax year but allowable in this tax year |
| 34 | Amount allowable as deduction under various sections (Schedule) |
See, for example, section 29, section 34, section 35, section 36 and section 37. The MSMED Act is a separate law; check its text.
Example. Greenfield Textiles (invented) is a partnership firm that has accounts audited under a separate statute. In Head A it lists partners and profit-sharing ratios; in Head B its books, software and method of accounting; in Head C it answers whether any chargeable amount was left out of the profit and loss account; and in Head D it answers each disallowance row, giving amounts or pointing to the Schedule.
How the Schedules connect
Many rows say "refer Schedule", so Part D is a summary and the Schedules hold the working. Rows 11(b) and 12 point to Schedule - General Information; rows 15 to 19 to Schedule - Accounting Information; rows 20 to 23 to Schedule - Computation of receipt/income; and rows 27 to 34 to Schedule - Computation of Expenses. Rows 24 to 26 call for an amount in the row itself. The Notes at the end of the form apply to Part D too.
Need help with the particulars?
Answering the Yes/No rows consistently with the books, and tying each Yes to a Schedule, is the work behind a clean Form 26. Our books of accounts compliance team can help you reconcile the particulars before the accountant signs.
Key takeaways
- Part D heads A to D cover rows 9 to 34.
- Head A: audit provision, option taxed under sections 199 to 204, partners, businesses and turnover ratios.
- Head B: books, software, cloud storage, backup server in India, accounting method, inventory valuation and Income Computation and Disclosure Standards.
- Head C: amounts chargeable but not credited, asset conversions, transfers below stamp duty value and negotiable-instrument borrowings and repayments.
- Head D: disallowances and allowances of expenses against the sections the form lists.
- Most rows are Yes/No with a pointer to a Schedule.
Read next
- Form 26, Parts A, B and C
- Form 26, Part D heads E to K
- Form 26 Schedules: general, accounting, receipts, expenses and prior period
- Rule 47: audit report in Form 26
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 2 October 2026. It explains the words of the rules and forms 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.