Quick Summary
The Government has released Draft Form No. 66, introducing a structured reporting framework for the computation ofbook profit under Section 206(1) of the Income-tax Act, 2025. The proposed form lays down detailed disclosure requirements, transition adjustments, and certification norms for companies
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FAQ :
Draft Form 66 is a new certification and reporting format for companies to compute their book profit under Section 206(1) of the Income-tax Act, 2025. It must be certified by a Practicing Chartered Accountant.
Form 66 requires general company details, profit as per financial statements, adjustments under Section 206, transition amount calculations, book profit computation, tax payable, and mandatory Chartered Accountant certification.
Transition Amounts relate to companies shifting to Indian Accounting Standards (Ind AS). They require disclosure of adjustments made to Other Equity, capital reserves, revaluation surpluses, and fair value adjustments.
Form 66 must be certified by a Chartered Accountant holding a valid Certificate of Practice, who will confirm the examination of accounts and the accuracy of the book profit computation and tax payable.
It standardises book profit computation, enhances reporting transparency, clarifies Ind AS transition adjustments, strengthens audit accountability, and reduces ambiguity in tax calculations.
Companies should review their accounting policies, evaluate transition adjustments, prepare working papers for Section 206 adjustments, and coordinate with auditors and tax advisors while monitoring the final notification.
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