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.
The second half of Part D of Form 26 runs from row 35 to row 53 across seven heads: prior period (E), losses, depreciation and deductions (F), international taxation (G), other key parameters (H), TDS and TCS (I), indirect taxation (J) and quantitative details (K). This article describes them as printed, together with the Notes at the end, 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.
Form 26 is prescribed by rule 47 for the particulars under section 63. Heads E to K carry rows 35 to 53: mostly Yes/No questions with a pointer to a Schedule, plus a few amounts, the list of Tax deduction and collection account numbers held, and a quantitative check for trading units and manufacturing concerns. The form ends with the accountant's signature block and ten Notes.
Where this fits
Rule 47 puts the particulars under section 63 in Parts C and D (rule 47 on the audit report in Form 26; section 63 on tax audit). Heads A to D of Part D are in the previous article, the report and Part C in Form 26, Parts A, B and C, and the Schedules in the first half and the second half. Sections of the Act that the rows cite are quoted as printed and not explained here. If you are reconciling TDS, TCS and loss records to these rows, our books of accounts compliance team can help.
Head E: Particulars of prior period (row 35)
| Row | What is asked |
|---|---|
| 35(a) | Any amount of income of a prior period credited to the profit and loss account (Yes/No; if yes, Schedule - Prior Period) |
| 35(b) | Any amount of expenditure of a prior period debited to the profit and loss account (Yes/No; if yes, Schedule - Prior Period) |
Head F: Losses, depreciation and deductions (rows 36 to 39)
| Row | What is asked |
|---|---|
| 36 | Depreciation allowable as per the Act for each asset or block of assets (Yes/No; if yes, Schedule - Losses, Depreciation and Deductions) |
| 37(a) | Any brought forward loss or depreciation allowance (Yes/No; Schedule) |
| 37(b) | (i) Whether a change in shareholding of a company during the tax year means that losses of earlier years cannot be carried forward as per section 119 (Yes/No); (ii) if yes, the amount of brought forward loss that cannot be carried forward |
| 37(c) | Whether the assessee incurred any speculation loss as per section 113(1) in the tax year (Yes/No; if yes, amount) |
| 37(d) | For a company, whether it is deemed to be carrying on a speculation business as per section 113(5) (Yes/No; if yes, amount of speculation loss incurred in the tax year, if any) |
| 37(e) | Whether the assessee incurred any loss as per section 114 in respect of a specified business (Yes/No; if yes, amount) |
| 38 | Any deductions admissible under Chapter VIII of the Act (Yes/No; Schedule) |
| 39 | Any utilisation of MAT/AMT credit available (Yes/No; Schedule) |
The sections cited are covered in our articles on sections 113 to 115 on losses from speculation business, specified business and specified activity and sections 119 and 120 on losses not carried forward in certain cases.
Head G: International taxation (rows 40 to 43)
| Row | What is asked (Yes/No; if yes, Schedule - International Taxation unless stated) |
|---|---|
| 40 | Any primary adjustment to transfer price, as per section 170(1), made in the tax year |
| 41(a) | Any expenditure by way of interest etc. exceeding the specified limit as per section 177(1) |
| 41(b) | Any interest expenditure brought forward as per section 177(5) |
| 41(c) | Any interest expenditure carried forward as per section 177(5) |
| 42 | Amount debited to the profit and loss account to the extent disallowable as per section 60 (if yes, amount) |
| 43 | Any remittances reported in Part D of Form 145 during the tax year |
See section 170 and section 177 for the provisions cited.
Head H: Other key parameters (rows 44 to 48)
| Row | What is asked (Yes/No; if yes, Schedule - Other Key Parameters) |
|---|---|
| 44 | Any amount not to be included as income chargeable under the head income from other sources as per section 92(2)(m) |
| 45(a) | Any loan, deposit or specified sum taken or accepted in excess of the limit in section 185(1) |
| 45(b) | Any receipt in excess of the limit in section 186(1), otherwise than by the modes specified in that section |
| 45(c) | Any payment in excess of the limit in section 186(1), otherwise than by the modes specified |
| 45(d) | Any repayment of a loan, deposit or specified advance in excess of the limit in section 188(1), otherwise than by the modes specified |
| 46 | Whether the assessee is required to furnish a statement in Form 98, Form 165, Form 166 or Form 167 |
| 47 | Any transactions in unquoted share |
| 48 | Whether the assessee has paid any amount as advance or loan as per section 2(40)(e) |
The cash-transaction rows refer to section 185, section 186 and section 188.
Head I: Particulars of TDS and TCS (rows 49 to 51)
| Row | What is asked |
|---|---|
| 49 | All tax deduction and collection account numbers (TAN) held by the assessee |
| 50(a) | Whether the assessee is required to deduct or collect tax under Chapter XIX-B of the Act (Yes/No; Schedule TDS/TCS) |
| 50(b) | Whether the assessee is required to furnish the statement of tax deducted or tax collected |
| 50(c) | Whether the assessee is liable to pay interest under section 398(3)(a) |
| 51(a) | Amount debited to the profit and loss account, to the extent disallowable under section 35(b)(i) |
| 51(b) | Any amount disallowed under section 35(b)(i) in a preceding tax year but allowable in this tax year |
| 51(c) | Amount debited to the extent disallowable under section 35(b)(ii) |
| 51(d) | Any amount disallowed under section 35(b)(ii) in a preceding tax year but allowable in this tax year |
Rows 50(b) to 51(d) are Yes/No with a pointer to Schedule TDS/TCS. See section 398 on assessee in default and section 35.
Heads J and K: Indirect taxation and quantitative details (rows 52 and 53)
| Row | What is asked |
|---|---|
| 52 | Whether the assessee is liable to pay indirect tax such as excise duty, goods and service tax, customs duty etc. (Yes/No); (a) if yes, Schedule - GST; (b) the break-up of expenditure incurred during the year, also in Schedule - GST |
| 53(a) | Whether the assessee has a trading unit (Yes/No; if yes, Schedule - Quantitative Details) |
| 53(b) | Whether the assessee has a manufacturing concern (Yes/No; if yes, Schedule - Quantitative Details), for (i) raw materials and (ii) finished products, by-products and scrap |
Signature block and Notes
Part D ends with place and date, the signature, and the accountant's name, member registration number, Permanent Account Number, Unique Document Identification Number if any, name of the proprietorship or firm, and firm registration number. The ten Notes are:
| Note | Subject |
|---|---|
| 1 to 4 | Name in full; address elements; the statuses to be filled; residential status |
| 5 to 7 | Report signed by an accountant as per section 515(3)(b); reasons for any negative or qualified answer; due consideration to any other audit report required under the Act |
| 8 | Code for the nature of amount, receipt or repayment: A cash payment; B cash receipt; C payment through non-account payee cheque; D receipt through non-account payee cheque; E transfer of asset; F transfer of liability; G conversion of assets; H conversion of liabilities; I journal entry (debit); J journal entry (credit); K any other mode (debit); L any other mode (credit) |
| 9 | Amounts in rupees unless otherwise provided |
| 10 | Some information in the form would be pre-filled to the extent possible |
Example. Brookside Metals Limited (invented) has a manufacturing concern and deducts tax at source. It answers Head F on its brought forward losses and depreciation, Head I with its TAN, and Head K with Yes for a manufacturing concern, pointing to Schedule - Quantitative Details.
Need help with Form 26 particulars?
The rows on losses, TDS and cash transactions draw on records kept across the year. Our books of accounts compliance team can help you assemble those records before the accountant signs.
Key takeaways
- Heads E to K cover rows 35 to 53 of Part D.
- Head F asks about depreciation, brought forward losses, speculation and specified business losses, Chapter VIII deductions and MAT/AMT credit.
- Head G asks about transfer pricing adjustments, interest limitation and remittances reported in Part D of Form 145.
- Head H asks about cash loans, receipts, payments and repayments over the limits, statements in Forms 98, 165, 166 or 167, unquoted shares and section 2(40)(e) advances.
- Head I asks for TANs and TDS/TCS obligations; Heads J and K ask about indirect tax and trading or manufacturing units.
- The Notes include a letter code (A to L) for the nature of an amount.
Read next
- Form 26, Parts A, B and C
- Form 26, Part D heads A to D
- Form 26 Schedules: second half
- 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.