Form 6 Under the Income-tax Act, 2025: Audit Report for Deductions Under Section 44 and Section 51
Introduction
The transition to the Income-tax Act, 2025 has brought with it a revised framework for compliance documentation, including the introduction of Form 6 — an audit report that plays a pivotal role in substantiating deduction claims related to preliminary expenditure and mineral prospecting costs. For assessees seeking benefits under Section 44 or Section 51 of the Income-tax Act, 2025, filing this form is not optional — it is a statutory obligation.
This article provides a comprehensive walkthrough of Form 6, covering its legal basis, applicability, filing requirements, process flow, and compliance implications.
Legal Framework and Cross-Reference Table
Before diving into the specifics, it is important to understand where Form 6 fits within the broader legislative structure. The form has its roots in earlier provisions under the Income-tax Act, 1961, and has been carried forward with updated references under the 2025 legislation.
| Particulars | Income-tax Act, 1961 | Income-tax Act, 2025 |
|---|---|---|
| Form Name (Old Rules) | Form 3AE | — |
| Form Name (New Rules) | — | Form 6 |
| Corresponding Sections | Section 35D(4), Section 35E(6) |
Section 44(6), Section 51(7) |
| Corresponding Rule (Old) | Rule 6AB | — |
| Corresponding Rule (New) | — | Rule 28 |
This mapping makes it clear that Form 6 under the Income-tax Rules, 2026 is the successor to the erstwhile Form 3AE under the Income-tax Rules, 1962, now realigned with the updated statutory provisions.
What Is Form 6?
Form 6 is a certified audit report that must be submitted by an eligible assessee claiming deductions under:
Section 44— covering preliminary and project-related capital expenditure, andSection 51— covering expenditure incurred on prospecting or developing mineral resources.
The form must be certified by a qualified accountant and submitted exclusively through electronic means via the Income-tax e-Filing Portal. Its primary function is to provide an audit-backed verification of the expenditure claimed, thereby ensuring that only legitimate and accurately computed deductions are allowed.
Purpose and Objectives of Form 6
The rationale behind mandating Form 6 is multi-dimensional. The form serves the following key objectives:
- Certification of qualifying expenditure eligible for deductions under
Section 44orSection 51 - Audit-based validation of project costs and capital expenditure
- Enabling system-driven verification of deduction claims through digital audit trails
- Strengthening transparency in financial reporting related to capital and mineral-related claims
- Protecting revenue by minimising inflated or incorrect deduction claims
- Providing a statutory audit trail that supports future scrutiny assessments or faceless proceedings
Important Note: The filing of Form 6 is a precondition for availing deductions under
Section 44andSection 51. Absence of this filing can lead to outright disallowance of the claimed deduction.
Who Must File Form 6?
Eligible Assessees
Form 6 is applicable to any assessee — other than a company or a co-operative society — who claims deduction under:
Section 44of the Income-tax Act, 2025 (preliminary/project-related expenditure), orSection 51of the Income-tax Act, 2025 (mineral prospecting/development expenditure)
Note: Companies and co-operative societies are specifically excluded from the requirement to file Form 6, as they are governed by separate audit and reporting mechanisms.
Who Is Authorised to Certify Form 6?
Form 6 must be certified by an accountant as defined under Section 515(3)(b) of the Income-tax Act, 2025. In practice, this refers to a Chartered Accountant holding a valid Certificate of Practice, subject to certain exceptions specified under the provision.
The certifying accountant must: