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. 32 is the single audit report an accountant gives when an assessee claims one of the eight deductions named in its title. Part A carries the basic information and the choice of section; the assessee then fills the one Part B that matches, and the accountant certifies it. 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.
Under rule 66, the accounts of the eligible business must be audited by an accountant before the "specified date referred to in section 63", and the assessee must furnish the signed and verified report by that date. The report is in Form No. 32, a separate report is needed for each undertaking or enterprise, and it must be accompanied by the profit and loss account and balance sheet of that undertaking as if it were a distinct entity. The rule gives no calendar date; the date comes from section 63.
What the rule requires
Rule 66(1) applies where a deduction is claimed under section 46, 138, 139, 140, 141, 142, 143 or 144. The accounts of the eligible business for the tax year are audited by an accountant as defined in section 515(3)(b), and the report, duly signed and verified, is furnished by the specified date referred to in section 63. Sub-rule (2) fixes the form, sub-rule (3) requires a separate report for each undertaking or enterprise, and sub-rule (4) requires the relevant documents listed in column D of its Table. The full rule is discussed in rule 66 on the audit report for deductions. Rule 67 separately prescribes the particulars to be furnished with the return for section 144; see the post on rules 65 and 67.
The deductions are in the Income-tax Act, 2025. Section 46 allows a deduction for capital expenditure of a specified business (section 46); sections 138 and 139 cover infrastructure undertakings and special economic zone developers (sections 138 and 139); section 140 covers eligible start-ups (section 140). Planning which undertaking claims which deduction, and what must be on file before the audit, is part of our tax planning advisory work.
Attachments the rule lists
The rule's Table links each section to a Part and to the documents to attach. Two of the entries refer to the old law, and are quoted once as printed.
| Section | Part of the form | Document to attach (column D) |
|---|---|---|
| 46 | B-1 | Copy of the agreement entered into with the Central Government, State Government or a local authority |
| 138 | B-2 | Copy of Form No. 10CCB of the Income-tax Rules, 1962 made under the Income-tax Act, 1961, as it existed prior to its repeal, of the developer |
| 139 | B-3 | Copy of the notification of the Special Economic Zone |
| 140 | B-4 | Copy of the certificate issued by the Inter-Ministerial Board of Certification |
| 141 | B-5 | Copy of the approval certificate and completion certificate of the housing project, and copy of the notification of the scheme by the Board |
| 142 | B-6 | Copy of the approval and completion certificates of the housing project; for a rental housing project, a copy of the notification issued under section 80-IBA of the Income-tax Act, 1961, as it existed prior to its repeal |
| 143 | B-7 | Copy of the agreement entered into with the Central Government, State Government or a local authority |
Part A: basic information
Part A asks for the name, address, Permanent Account Number and tax year of the assessee, and then for the section under which the deduction is claimed, to be selected from eight options. Each option points to the Part to be filled: section 46 to B-1, 138 to B-2, 139 to B-3, 140 to B-4, 141 to B-5, 142 to B-6, 143 to B-7 and 144 to B-8. The Notes say that "accountant" has the meaning in section 515(3)(b) and that the accountant must give the "CA Membership ID" issued by the Institute of Chartered Accountants of India when signing the certificate, and that amounts are filled in rupees unless otherwise provided.
Parts B-1 to B-8 at a glance
Each Part B starts at row 6 and ends with a certification by the accountant. The form is long, so the table below groups what each Part asks.
| Part | Section | What it asks |
|---|---|---|
| B-1 | 46 | Date of incorporation and commencement of operations; nature of the specified business from a list of fifteen (cold chain facility, warehousing, natural gas pipeline, new hotel, new hospital, housing projects, fertilizer plant, inland container depot, and others); agreement upload; whether the business was formed by splitting up or reconstruction; use of previously used plant or machinery and its percentage; the capital expenditure, its date and mode of payment; whether the asset is used for other business or includes land, goodwill or a financial instrument; the deduction claimed |
| B-2 | 138 | Dates of incorporation and commencement; development, operation or maintenance of an infrastructure facility, and its nature; transfer from a developer, with the first year of claim by the developer; generation, transmission or distribution of power, with years and values of plant and machinery; splitting up and previously used machinery; initial year of claim, total sales, profits from the eligible business and the deduction |
| B-3 | 139 | Name and location of the SEZ, date of its notification (with upload), date of start of development, whether operation and maintenance is transferred from another developer; initial year of claim, total sales, profits from the eligible enterprise and the deduction |
| B-4 | 140 | Date of incorporation; DPIIT number of the start-up; date of and upload of the Inter-Ministerial Board certificate; nature of the start-up (innovation, or a scalable model with employment growth); splitting up and previously used machinery; initial year of claim, total sales, profits and the deduction |
| B-5 | 141 | Name of the project or undertaking; nature of business (housing projects, food processing, or food-grain handling and storage); for a housing project, works contract, approval and completion details, slum redevelopment scheme, city, plot size, built-up area limits and allotment questions; splitting up and previously used machinery; initial year, total sales, profits and the deduction |
| B-6 | 142 | Housing project or rental housing project; approval and completion details, including whether the project was completed within five years from approval; whether it is the only housing project on the plot; whether units were allotted to a spouse or minor children; separate books of account; the deduction |
| B-7 | 143 | Dates; the State of location from the eight listed (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura); nature of activity, substantial expansion, and nature of the eligible business from the list given; the deduction |
| B-8 | 144 | Unit particulars and date of registration in the SEZ; total export turnover; export proceeds in convertible foreign exchange; sale proceeds; splitting up and previously used machinery; foreign exchange brought into India within six months from the end of the tax year or within the further period allowed by the competent authority; the deduction |
The Part B certifications state that the capital expenditure, entity, start-up or other claimant meets the conditions in the relevant section and that the deduction claimed in the stated row is true, as far as the accountant knows and believes. Parts B-2, B-3 and B-5 name the old law in the certificate (sections 80-IA, 80-IAB and 80-IB of the Income-tax Act, 1961) and Part B-6 refers to section 80-IBA of that Act in a row. They are quoted as printed; check the repealed provisions where relevant.
Who signs and what goes with it
The accountant signs each certification, giving name, designation, membership number, UDIN details if any, name of the proprietorship or firm and firm registration number. The assessee furnishes the report. Where the assessee has more than one eligible undertaking, rule 66(3) calls for a separate report for each.
Example
Vandana Textiles Limited runs a new unit that it believes qualifies as an eligible start-up under section 140, and a second, unrelated warehouse that claims section 46. The rule requires two reports: one with Part A (option 4) and Part B-4, with the DPIIT number and the Inter-Ministerial Board certificate attached, and one with Part A (option 1) and Part B-1, with the agreement with the government or local authority attached. Each comes with the undertaking's own profit and loss account and balance sheet.
Need help with the audit report for a deduction?
Choosing the right Part, collecting the certificates and preparing a stand-alone balance sheet for each undertaking takes planning before the audit starts. Our tax planning advisory team can help you review eligibility, the attachments and the timeline for the report.
Key takeaways
- One form, Form No. 32, covers sections 46 and 138 to 144; Part A selects the section and one Part B is filled.
- The report is due by the specified date referred to in section 63, as rule 66(1) says; the rule gives no calendar date.
- A separate report is needed for each undertaking or enterprise, with its own profit and loss account and balance sheet.
- The Table in rule 66(4) lists the documents to attach for each Part.
- The accountant is one defined in section 515(3)(b) and certifies each Part.
Read next
- Rule 66 on the audit report for deductions
- Rules 65 and 67 on the rent paid declaration and SEZ reinvestment particulars
- Form No. 28: the accountant's report on a slump sale
- Form Nos. 34 and 35: reports for additional employee cost and offshore banking or IFSC units
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.