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 Schedules of Form 26 expand the rows of Part D. This article covers the first five: Schedule - General Information, Schedule - Accounting Information, Schedule - Computation of receipt/income, Schedule - Computation of Expenses and Schedule - Prior Period. Each table's heading carries the Part D row it expands. The description follows 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. A Schedule is completed only where the Part D row says "refer Schedule". Here the tables run from Part D rows 11(b), 12, 15 to 23, 27 to 32, 34 and 35. Printed row sections (for example sections 277, 92(2)(m) or 36(4)) are quoted, not explained.
The form, the rule and the section
Rule 47 puts the particulars under section 63 in Parts C and D of Form 26 (rule 47 on the audit report in Form 26); section 63 is explained in section 63 on tax audit limits and the specified date. The rows that point to these Schedules are in Part D, heads A to D and Part D, heads E to K; the remaining Schedules are in the second half. If you need the supporting statements built from the ledgers, our books of accounts compliance team can prepare them.
Schedule - General Information
| Table (Part D row) | Columns as printed |
|---|---|
| 11(b) Particulars of changes in members or partners or profit-sharing ratio | Serial number, date of change, name of partner or member, Permanent Account Number, type of change, old profit-sharing ratio (%), new profit-sharing ratio (%), remarks |
| 12(a) Nature of businesses or professions | Serial number, code, description |
| 12(b) Particulars of change in nature of businesses or professions | Serial number, nature of change, code, description |
| 12(c)(ii) Impact of disagreement or disqualification in cost audit | Serial number, particulars, increase in profit or decrease in loss, decrease in profit or increase in loss, net effect, remarks |
Schedule - Accounting Information
| Table (Part D row) | What it carries |
|---|---|
| 15(b) Change in method of accounting | Particulars, increase in profit or decrease in loss, decrease in profit or increase in loss, net effect, remarks |
| 16(b) Change in method of valuation of inventory | Four lines, by section 277(1)(i) to (iv), with the same effect columns and remarks |
| 17 Particulars of Income Computation and Disclosure Standards adjustments | One line per Standard, ICDS I to X (accounting policies; valuation of inventories, other than the effect already reported at 16(b); construction contracts; revenue recognition; tangible fixed assets; changes in foreign exchange rates; governments grants; securities, other than the effect already reported at 16(b); borrowing costs; provisions, contingent liabilities and contingent assets), with the effect columns, net effect, remarks and a total |
| 18 Disclosure as per the Standards | Eight lines: ICDS I, II, III, IV, V, VII, IX and X, each with a disclosure column |
| 19 Profits and gains assessable on presumptive basis | Serial number, section, profits and gains on presumptive basis |
Schedule - Computation of receipt/income
| Table (Part D row) | What it carries |
|---|---|
| 20 Amounts chargeable to income-tax but not credited to the profit and loss account | Printed lines by section, with description and "amount not credited": 2(40)(e) deemed dividend; 2(40)(f) payment on buy back of shares; 26 (other than amount already covered in 16(b)); 38 deemed profits and gains; 48 read with Schedule IX (Tea Development Account etc.); 49 read with Schedule X (Site Restoration Fund); 92(2)(h) advance forfeiture; 92(2)(k) amount received from a business trust; 278(1) interest on compensation or enhanced compensation; 278(2) escalation of price or export incentive; 277(3) read with section 2(49)(w) subsidy, grant etc.; other item of income; capital receipt |
| 21 Amount chargeable under section 92(2)(m) but not credited | Type of asset, details of asset, name of transferor or payer, PAN of transferor or payer, consideration paid, amount includible as income under section 92(2)(m) |
| 22 Capital assets converted into stock-in-trade | Description of capital asset, date of acquisition, cost of acquisition, amount at which converted into stock-in-trade |
| 23 Transfer of property below assessable value | Type of asset (land, building, or both), address of the transferred property, share in the property transferred, consideration received or accrued, stamp duty value, and whether section 53 or section 78 applies |
Schedule - Computation of Expenses
This is the largest of the five. Its lines are printed with the section number against each, and the amount column is "amount disallowable as deduction" unless stated.
| Table (Part D row) | Lines or columns as printed |
|---|---|
| 27(a) Sections 29, 31 and 32 | (i) employer's contributions under 29(1)(a), 29(1)(b) read with section 124, and 29(3); (ii) 32(a) bonus or commission otherwise payable as profits or dividend; (iii) 29(2) provision for gratuity; (iv) 31(1) provision for bad and doubtful debt; (v) 31(2) bad debt; (vi) 32(b) interest on capital borrowed for acquisition of asset; (vii) 32(d) discount on zero-coupon bond; (viii) 32(e) special reserve of a specified entity; (ix) 32(h) marked to market loss or other expected loss; (x) 32(i) family planning expenditure by a company; (xi) liability of a contingent nature |
| 27(b) Section 29(1)(e) | Nature of fund (ESI, PF or others), amount |
| 27(c) Section 34 | Capital expenditure; personal expenditure; advertisement in a political party's souvenir, brochure, tract or pamphlet; club expenditure (entrance fees and subscriptions, cost of services and facilities); expenditure for an offence or prohibited purpose, a benefit or perquisite under section 34(3)(b), compounding an offence, settling proceedings, or any other such purpose; corporate social responsibility activities under section 135 of the Companies Act, 2013; total |
| 27(d) Section 35 | 35(a) tax paid on income, or by employer, or in any other country for which relief is eligible; 35(b)(iii) payment to a provident or other fund for employees; 35(c) payment chargeable under salaries, payable outside India or to a non-resident; 35(d) royalty, licence fee etc. levied or appropriated from a State government undertaking; 35(e) remuneration to a partner by a firm; 35(f) payment to a member by an association of persons or body of individuals |
| 28 Penalty levied under any law | Law under which levied, section, amount |
| 29 Payments to specified persons under section 36(3) | Name, Permanent Account Number, relation with assessee, nature of transaction, amount debited to profit and loss account |
| 30 and 31 Sections 36(4) and 36(5) | Date of payment, nature of payment, amount, name of payee if available, Permanent Account Number of payee if available, Aadhaar number of payee if Permanent Account Number is not available |
| 32(a) and (b) Section 37(2)(a) to (f) | Section, nature of liability, amount disallowable (a), or amount allowable in the tax year for amounts disallowed earlier (b) |
| 34(a) Amounts allowable as deduction under sections | Section, amount debited to profit and loss account, amount of deduction allowable, and deduction allowable in excess of the amount debited (E = D - C). Lines: 45(1)(a)(i), 45(1)(a)(ii), 45(1)(b), 45(2), 45(3)(a)(i), 45(3)(a)(ii), 45(3)(b), 45(3)(c), 47(1)(a), 47(1)(b), 46, 44, 51, four lines for 52(1) by serial numbers 1 to 4, and any other relevant section |
| 34(b) | 48 read with Schedule IX and 49 read with Schedule X, with the amount of deduction allowable |
The sections quoted in this Schedule are explained in our articles on section 29, section 34, section 35, section 36 and section 37. The Companies Act, 2013 is a separate law; check its text.
Schedule - Prior Period
| Table (Part D row) | Columns |
|---|---|
| 35(a) Income of prior period | Serial number, nature of income, amount, preceding tax year to which it relates |
| 35(b) Expenditure of prior period | Serial number, nature of expenditure, amount debited to profit and loss account, preceding tax year to which it relates, whether complete amount is allowable as deduction in this tax year (Yes/No), and if no, the amount allowable in this tax year |
Example. Harvest Foods Partnership (invented) answers Yes at row 11(b) because a partner retired. It lists the date of change, partner, type of change and the old and new ratios in Schedule - General Information, and at row 29 lists a payment to a relative partner in Schedule - Computation of Expenses.
Need help with the Schedules?
These tables are filled from ledgers, payment registers and partner records, and the Part D answers must agree with them. Our books of accounts compliance team can prepare the working schedules so that the accountant's report and the Schedules match.
Key takeaways
- A Schedule is completed only where the Part D row refers to it.
- Schedule - General Information covers partner changes, nature of business and cost audit impact.
- Schedule - Accounting Information covers method changes, inventory valuation, ICDS I to X adjustments and disclosures, and presumptive profits.
- Schedule - Computation of receipt/income covers chargeable amounts not credited, section 92(2)(m) items, asset conversions and below-value transfers.
- Schedule - Computation of Expenses runs from rows 27 to 34 with section-wise lines.
- Schedule - Prior Period covers income and expenditure of a preceding tax year.
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.