Form 5: Statement of preliminary expenses incurred by the assessee under section 44(3)
Source checked 21 October 2026 · Original author: Finin2min Editorial Desk
Purpose, person and period
Statement of preliminary expenses incurred by the assessee under section 44(3).
The assessee reports the specified preliminary expenditure under section 44(3), including the activity, amount and person who carried it out.
Period gate: This numbered form belongs to the Income-tax Rules, 2026, effective 1 April 2026. The predecessor 3AF is a concordance, not permission to change an earlier-year filing into a new-law form. For earlier periods, use the applicable 1961 Act form and saved procedure.
Controlling rule and source pages
Rule 27; Section 44, Section 44(3), Section 263(1). Physical PDF pp 288-289; printed Gazette pp 1820-1821.
Rule 27 — connected rule text
27. Form of statement to be furnished regarding certain preliminary expenses eligible for deduction under section 44.– (1) The statement containing particulars of expenditure required to be furnished under section 44(3) shall be in Form No. 5 for each tax year. (2) Form No. 5 shall be furnished to the Director General of Income -tax (Systems) or any person auth orised by him, one month prior to the due date for furnishing the return of income as specified under section 263(1).
Completed field illustration
Fictional data, not for filing. A fictional company identifies preliminary expenditure on a feasibility report and project report.
| Form field / block | Completed fictional entry |
|---|---|
| Part A: name / status / PAN | Example Manufacturing Ltd / domestic company / synthetic ZZZCE0000Z |
| Address / contact | 10 Model Road, Pune 411001 / finance@example.invalid |
| Tax year | 2026-27 |
| Feasibility report: amount / agency | Rs 1,20,000 / Example Feasibility Services Ltd |
| Project report: amount / agency | Rs 80,000 / SELF |
| Other prescribed preliminary-expense heads | Nil in this example |
| Total preliminary expenditure reported | Rs 2,00,000 |
| Commencement / evidence | 1 October 2026 / invoices PE-01 and PE-02 |
| Verification | Authorised officer - model role; NOT SIGNED |
This illustrates the named fields, not every possible schedule. Use the complete official extract for additional applicable fields, annexures and verification. “Not signed” means no professional certification or authority action has occurred.
Reconcile the example
- 1,20,000 + 80,000 = 2,00,000.
Reporting this expenditure does not establish the deduction amount: section 44 eligibility, limits and instalments require separate computation.
Prepare, furnish and retain
- Use the form identity and period above, then determine the person who prepares, issues or verifies it from Rule 27. An authority-issued order is not an applicant filing.
- Collect the records that support the actual fields in the example; keep any mandatory schedules and annexures specified in the complete source form.
- Reconcile dates, amounts, units and identifiers to the underlying records. Preserve the applicable rule version and any later correcting notification.
- Where the rule prescribes electronic furnishing, use the current official utility/schema and authorised verification. A local PDF does not produce a portal acknowledgement.
- Retain the submitted version, supporting schedules and actual acknowledgement or issued certificate/order, as applicable. This fictional model supplies none of those evidential outcomes.
Download the correct documents
Official Form 5 source extract Filled sample — fictional field illustration
The official extract preserves source pages; later amendments are supplied with affected forms. Read the April corrigendum where its printed-page corrections apply. The filled field illustration is an educational model and cannot be filed.
Primary sources
Questions readers ask
Does this sample prove approval, filing or a professional conclusion?
No. It completes the named fields using synthetic facts. It has no real signature, DSC, approval or acknowledgement.
Can I use the legacy form number for a current tax-year obligation?
Establish the governing period first. A predecessor number is a cross-reference; earlier-year procedures and current-year forms must be kept distinct.