CBDT Clarifies Book Profit Reporting Rules for Form 66

The CBDT clarifies book profit reporting Form 66, addressing concerns about discrepancies in reporting requirements for companies following Indian Accounting Standards (Ind AS). This clarification, issued on April 15, 2026, aims to streamline the process of computing book profit under Section 115JB of the Income Tax Act, 1961, specifically for companies that have adopted Ind AS. The issue arose from differing interpretations on how certain Ind AS adjustments should be reflected in Form 66, leading to potential inconsistencies in tax calculations. The CBDT's move seeks to provide a uniform approach, ensuring accurate and consistent reporting of book profit. This clarification is crucial for companies undergoing tax audits, as it directly impacts the computation of Minimum Alternate Tax (MAT). Failure to comply with these clarified guidelines could result in notices and potential penalties from the Income Tax Department.

Section 115JB of the Income Tax Act, 1961, mandates the payment of Minimum Alternate Tax (MAT) based on book profits. Discrepancies in reporting under Ind AS created uncertainty regarding the correct calculation of book profit, potentially leading to non-compliance. This clarification ensures adherence to tax laws and avoids legal challenges.

The CBDT's clarification is a welcome step towards reducing ambiguity in tax compliance for Ind AS-compliant companies. Taxpayers should carefully review their past filings and ensure alignment with the clarified guidelines to mitigate potential risks of reassessment or penalties.

This clarification ensures uniform reporting and avoids potential discrepancies in MAT calculation. It reduces the risk of scrutiny and penalties for non-compliance.