1. Background

Form No. 26 is prescribed as the Report of Audit of Accounts and Statement of Particulars required to be furnished under Section 63 of the Income Act, 2025 read with Rule 47 of the Income-tax Rules, 2026. It serves as the statutory audit report for taxpayers whose accounts are subject to audit under the Act.

2. Applicability of Form No. 26 (Section 63)

Form No. 26 is required to be furnished by every person carrying on business or profession whose accounts are liable for audit under Section 63. The applicability includes:

(a) Business Entities

• • Where total sales, turnover, or gross receipts exceed ₹1 crore
  • Threshold extended to ₹10 crore where:
    • Cash receipts ≤ 5% of total receipts, and
    • Cash payments ≤ 5% of total payments

(b) Professionals

• • Where gross receipts exceed ₹50 lakh

(c) Presumptive Taxation Cases (Sections 58(2) and 61(2))

• • Where income declared is lower than the prescribed deemed income

(d) Opting Out of Presumptive Scheme

• • Where a taxpayer opts out of presumptive taxation during the lock-in period of five consecutive years, and
  • Income exceeds the basic exemption limit

3. Due Date for Filing (Section 263(1))

Form No. 26 is required to be furnished annually within the prescribed timeline, which is:

• • One month prior to the due date of filing return of income under Section 263(1)

4. Structure of Form No. 26

Form No. 26 is divided into four distinct parts:

• • Part A – Particulars of the Assessee
  • Part B – Statement of Particulars under Section 63
  • Part C – Audit Report where accounts are audited under any other law (corresponding to erstwhile Form 3CA)
  • Part D – Audit Report where accounts are not audited under any other law (corresponding to erstwhile Form 3CB)

5. Mandatory Requirement of UDIN

• UDIN (Unique Document Identification Number) is mandatory
• It must be generated by the signing Accountant and should be quoted in Form No. 26 at the time of filing

6. Process Flow for Filing Form No. 26

The filing of Form No. 26 follows a structured electronic process:

1. 1. Engagement of Accountant
      • The assessee appoints an Accountant as defined under Section 515(3)(b)
   2. Preparation of Form
      • The Accountant fills Form No. 26 on the e-filing portal
      • Membership Number and FRN are required, wherever applicable
   3. Generation of UDIN
      • UDIN is generated and quoted in the form
   4. Digital Signing and Upload
      • The form is digitally signed using the Accountant’s DSC
      • Uploaded on the e-filing portal
   5. Acceptance by Assessee
      • The assessee electronically accepts the form
      • Filing process is completed upon such acceptance
2.