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.
Form 26 is the audit report and statement of particulars required to be furnished under section 63 of the Income-tax Act, 2025. This article covers its opening category choice and Parts A, B and C: the two alternative audit reports and the particulars of the assessee. Part D and the Schedules are in the sibling articles. 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 audit of accounts under section 63. Rule 47 allots Part A to an assessee whose accounts are audited under another law, Part B to any other business or profession, and Parts C and D to the particulars. The report must be signed by an accountant as defined in section 515(3)(b).
The rule and the section
Rule 47 provides that the report of audit of the accounts of a person required to be furnished under section 63 is in Part A of Form 26 for a person who carries on business or profession and is required by or under any law other than the Act to get his accounts audited, and in Part B for any other person who carries on business or profession. The particulars required under section 63 are in Parts C and D. Rule 47(3) allows the report to be revised by obtaining a revised report from an accountant, duly signed and verified, to be furnished before the end of the relevant financial year succeeding the tax year, if a payment after furnishing the report necessitates recalculation of a disallowance. The rule is explained in rule 47 and the audit report in Form 26; the section is explained in section 63 on tax audit limits and the specified date. The form is made by the Rules for that section; the limits that trigger the audit are in the Act, not in the form.
The form is printed under the heading "Audit report and Statement of particulars required to be furnished under section 63", with the reference "". If you need a tax audit report prepared or reviewed, our books of accounts compliance team handles the accounts side and the filing calendar.
The category line
At the top the form asks the assessee's category (select one):
| Category | Who | Parts to fill, as printed |
|---|---|---|
| (i) | A person who carries on business or profession and is required by or under any other law to get his accounts audited | Parts A, B and C |
| (ii) | A person who carries on business or profession but is not the person in (i) | Parts A, B and D |
The lists of Parts printed against the two categories do not match rule 47, which allots Part A to category (i), Part B to category (ii) and Parts C and D to the particulars in both. This article follows rule 47 for the Parts; check the official text before filling.
Part A: audit report where the accounts are audited under another law
Part A is headed "Audit report under section 63, in a case where the accounts of business or profession of a person have been audited under any other law". Its paragraphs are:
| Para | What the accountant reports |
|---|---|
| 1 | That the statutory audit of the named assessee was conducted by him or the named firm under the stated Act |
| 2 | Annexes the statutory audit report of a stated date with the audited profit and loss account or income and expenditure account, the audited balance sheet, notes, and documents the said Act declares part of them |
| 3 | Impact of statutory audit qualifications: (a) whether the statutory auditor made any observation, qualification, adverse remark, disclaimer or emphasis of matter that would vary income, loss or book profit (Yes/No); (b) if yes, its effect not considered in Part D, in a table (serial number, nature of observation, increase in profit or decrease in loss, decrease in profit or increase in loss, net impact, remarks) |
| 4 | That the statement of particulars under section 63 is annexed in Part D of Form 26 |
| 5 | The accountant's opinion, as far as the signatory knows and believes and according to examination of books of account, documents and explanations, that the particulars in Part D are true and correct, subject to stated observations or qualifications, selected by clause number (9 to 53) and type: test-check basis applying the principle of materiality; based on management representation; unable to verify; or others |
The Part ends with place, date, 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.
Notes to Part A. (1) The report is signed by an accountant as defined in section 515(3)(b). (2) Where any requirement is answered in the negative or with qualification, reasons are given. (3) Where the assessee must furnish an audit report under another section of the Act, the auditor conducting the section 63 audit gives due consideration to that report while finalising this one. (4) Delete whichever of the starred words is not applicable. (5) Amounts are filled in rupees unless otherwise provided.
Part B: audit report in any other case
Part B is headed "Audit report under section 63, in the case of a person referred to in clause (b) of sub-rule (1) of rule 47".
| Para | What the accountant reports |
|---|---|
| 1 | Having examined the balance sheet and the profit and loss account or income and expenditure account for the stated period |
| 2 | Certifies they agree with the books of account kept at the head office and the stated number of branches |
| 3(a) | Observations, comments, discrepancies or inconsistencies, if any |
| 3(b) | Impact of audit qualifications: the same Yes/No question and table as in Part A |
| 3(c) | Subject to the above: (A) all information and explanations necessary for the audit were obtained, as far as the accountant knows and believes; (B) proper books of account have been kept by the head office and branches so far as appears from examination; (C) the accounts, read with notes, give a true and fair view of the state of affairs as at 31st March and of the profit or loss, or surplus or deficit, for the year |
| 4 | The statement of particulars is annexed in Part D |
| 5 | The same opinion and observations table as in Part A, paragraph 5 |
The signature block is the same as in Part A. The Notes to Part B repeat Notes 1 to 3 and 5 of Part A and add that the total number of branches is to be mentioned.
Part C: particulars of the assessee
Part C is a short block of eight rows.
| Row | Particular | Reference |
|---|---|---|
| 1 | Name | Note 1 of the Notes at the end of the form |
| 2 | Address | Note 2 |
| 3 | Permanent Account Number | |
| 4 | Status | Note 3 |
| 5 | Residential status | Note 4 |
| 6 | Email id | |
| 7 | Contact number with country code | |
| 8 | Tax year |
The Notes that belong to Parts C and D are printed after Part D. Note 1 asks for an individual's first, middle and last name in full, without abbreviation. Note 2 lists the address elements. Note 3 lists the ten statuses (individual, Hindu undivided family, company, firm, association of persons, body of individuals, local authority, artificial juridical person, Government, trust). Note 4 lists residential status: resident, non-resident, or resident but not ordinarily resident. Part D starts with row 9.
Example. Kiran Mehta & Co. (invented) reports for Lotus Packaging LLP (invented), whose accounts are audited under a separate statute. The firm completes Part A, annexing the statutory auditor's report, answering the Yes/No question on qualifications and noting observations against Part D clauses. Part C carries the LLP's name, address, status, residential status and tax year. For a proprietor with no statutory audit, Part B would be used.
Need help with a tax audit report?
Choosing between Part A and Part B, reading the qualification table and keeping the Part D particulars consistent with the books are areas where a second review helps. Our books of accounts compliance team can support the accounts and the audit file behind Form 26.
Key takeaways
- Form 26 is prescribed by rule 47 for the audit report and particulars under section 63.
- Part A is the report where accounts are audited under another law; Part B is the report in any other case; Parts C and D carry the particulars.
- Both reports ask about audit qualifications and their impact on income, loss or book profit.
- The accountant records observations against clause numbers 9 to 53 of Part D.
- Part C asks name, address, Permanent Account Number, status, residential status, email, contact number and tax year.
- The report must be signed by an accountant as defined in section 515(3)(b).
Read next
- Form 26, Part D: general information, books, receipts and expenses
- Form 26, Part D: losses, depreciation, international taxation, TDS and quantitative details
- 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.