New Form 66 for Section 206 Book Profit: Companies to File CA-Certified Report

Last updated: 19 February 2026

The Government has released Draft Form No. 66, introducing a structured reporting framework for the computation of book 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 liable to tax on book profits.

The draft format signals a move toward greater transparency and uniformity in calculating book profit, particularly for companies following Indian Accounting Standards (Ind AS) and those undergoing accounting convergence adjustments.

New Form 66 for Section 206 Book Profit: Companies to File CA-Certified Report

What Is Draft Form 66?

Form 66 is a certification and reporting format to be filed by companies for the computation of book profit under Section 206(1). The report must be certified by a Practicing Chartered Accountant under the Institute of Chartered Accountants of India framework and in accordance with the Chartered Accountants Act, 1949.

The form is divided into multiple parts covering:

General company details
Profit as per financial statements
Adjustments under Section 206
Transition amount calculations
Book profit computation
Tax payable
Mandatory CA certification

Structure of Draft Form 66

Part A - General Information

Companies must disclose:

Name, PAN, address and contact details
Relevant tax year
Total income under the Act
Income-tax payable
Financial year adopted under the Companies Act, 2013

The form also requires confirmation that the statement of profit and loss has been prepared in accordance with Schedule III of the Companies Act, 2013.

Part B - Adjustments to Book Profit

This section requires detailed additions and deductions under Section 206(1)(c) and 206(1)(d). Companies must:

Add specified items such as certain reserves, provisions, or adjustments
Deduct eligible items as prescribed
Provide working notes wherever required

The structure resembles a Minimum Alternate Tax (MAT)-style computation mechanism, ensuring book profits are aligned with statutory adjustments.

Part C - Transition Amount & Ind AS Adjustments

One of the most significant aspects of Draft Form 66 is the reporting of “Transition Amount” under Section 206(1)(t).

Companies transitioning to Indian Accounting Standards (Ind AS) must disclose:

Adjustments made to Other Equity
Capital reserve and securities premium adjustments
Revaluation surplus changes
Fair value adjustments under Ind AS 109
Adjustments relating to PPE and intangible assets under Ind AS 101
Cumulative translation differences

The form requires the computation of 1/5th of the transition amount, indicating phased adjustment over multiple years.

This provision ensures tax neutrality during accounting convergence.

Special Category: IFSC Units

Companies located in an International Financial Services Centre (IFSC) deriving income solely in convertible foreign exchange must disclose their status separately for rate applicability.

Mandatory Chartered Accountant Certification

Form 66 must be certified by a Chartered Accountant holding a valid Certificate of Practice. The CA must confirm:

Examination of accounts and records
Correct computation of book profit
Tax payable under Section 206(1)
Accuracy of disclosures

Membership number, firm registration number and UDIN details are mandatory.

Why Draft Form 66 Matters

The introduction of Draft Form 66:

Standardizes book profit computation
Enhances reporting transparency
Brings clarity to Ind AS transition adjustments
Strengthens audit accountability
Reduces ambiguity in Section 206 tax calculations

For companies, especially large corporates and Ind AS-compliant entities, this draft framework signals tighter compliance oversight and structured documentation requirements.