Income-tax Rules, 2026 | Rule 66 of 333

Income-tax Rule 66 — Audit certification for profit-linked deductions

Reviewed by CA Nikhil Gupta · Last reviewed 24 July 2026

Finin2min legal explainer · Primary authority: CBDT Notification No. 22/2026 (G.S.R. 198(E))

Income-tax Rule 66 — archived legal extract

Archived extract or condensed summary for Rule 66 (audit certification for profit-linked deductions); NOT authenticated Gazette text. Some tables have been flattened. Consult the official signed CBDT Gazette and later amendments.

66. Furnishing of audit report for claiming deduction under section 46 or 138 or 139 or 140 or 141 or 142 or 143 or 144.– (1) For the purposes of claiming deduction under sections 46 or 138 or 139 or 140 or 141 or 142 or 143 or 144, the accounts of the eligible business for the tax year for which the deduction is claimed shall be audited by an accountant as defined in section 515(3)(b), before the specified date referred to in section 63 and the assessee shall furnish by that date the report of such audit duly signed and verified by such accountant. (2) The report of the audit of the accounts of an assessee, which is required to be furnished under sub-rule (1), shall be in Form No. 32. (3) A separate report shall be furnished by each undertaking or enterprise of the assessee claiming deduction under section 46 or 138 or 139 or 140 or 141 or 142 or 143 or 144 and shall be accompanied by the profit and loss account and balance sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. (4) The said Form No. 32 shall be accompanied by the relevant documents as given in column D wherever applicable, as per the relevant sections in column B and the relevant part as mentioned in column C shall be filled, as specified in the following table, duly certified wherever applicable: Table Sl. Relevant Part of Section Relevant documents to be attached No Form A B C D Copy of the agreement entered into with the Central Government, 1. 46 B1 State Government, or a local authority. Copy of Form No. 10CCB of the Income-tax Rules, 1962 made 2. 138 B2 under the Income-tax Act, 1961, as it existed prior to its repeal, of developer 3. 139 B3 Copy of the notification of the Special Economic Zone (SEZ). Copy of certificate issued by the Inter-Ministerial Board of 4. 140 B4 Certification. Copy of approval certificate and completion certificate of the 5. 141 B5 Housing Project, Copy of the notification of the scheme by the Board. Copy of approval certificate and completion certificate of the 6. 142 B6 Housing Project Copy of notification issued under section 80-IBA of the Income- 7. 142 B6 tax Act, 1961, as it existed prior to its repeal in the case of a Rental Housing Project Copy of the agreement entered into with the Central Government, 8. 143 B7 State Government, or a local authority.

In two minutes: Audit certification for profit-linked deductions

The deduction under the referenced provision requires the prescribed accountant report in Form 32.

Verify eligible undertaking, eligible tax-year and profit computation separately; reconcile the filing window for the report and return.

When Rule 66 applies — decision workflow

Confirm that the transaction or taxpayer is governed by Rule 66 and its linked provision in the Income-tax Act, 2025.
Verify eligible undertaking, eligible tax-year and profit computation separately; reconcile the filing window for the report and return.
For audit certification for profit-linked deductions, test the specific exceptions, tax-year dates and cumulative restrictions in the linked provision.
For Rule 66, document how audit certification for profit-linked deductions was resolved and the current rule version used for the relevant year.

Worked compliance example

Where consolidated company profit is ₹2 crore but eligible-unit profit is ₹70 lakh, only a properly computed eligible base supports the deduction claim.

This audit certification for profit-linked deductions illustration demonstrates a test; it is not evidence that a claim or transaction actually qualifies.

Documents and calculation evidence

Keep separate-unit books, eligible profit bridge, accountant certificate and portal acknowledgement.

For this audit certification for profit-linked deductions analysis, document the exact tax year and triggering transaction or reporting date.
Preserve calculations and a source-evidence trail specifically supporting audit certification for profit-linked deductions, including prescribed certification.
Retain all required attachments and the filing acknowledgement for Rule 66; verify the current form against its notified instructions.
Reconcile audit certification for profit-linked deductions to the relevant ledger accounts, tax-return disclosures and counterparty confirmations.

Common error to avoid

Filing a certificate without an independent eligible-activity calculation.

For audit certification for profit-linked deductions, confirm whether the Income-tax Act, 2025 or transition/savings provisions govern the period; old forms are not automatically accepted.

Frequently asked questions

Does Rule 66 create a benefit by itself?

No. For audit certification for profit-linked deductions, entitlement depends on the linked Income-tax Act, 2025 section, the statutory conditions and the applicable notified version of Rule 66.

What is the first verification step?