Draft Income Tax Rule 47 and 48: Audit Report U/s 63; Other Electronic Payment Modes

Clipped from: https://taxguru.in/income-tax/draft-income-tax-rule-47-48-audit-report-u-s-63-electronic-payment-modes.html

Extract of Rules 47 and 48 of the Draft Income-tax Rules, 2026 outlines compliance requirements relating to audit reporting and electronic payments. Rule 47 provides that the audit report required under Section 63 must be furnished in Form No. 26 in cases where a person carrying on business or profession is required under any law other than the Income-tax Act, 2025 to get accounts audited, as well as in cases where such person is not covered by any other law but is still required to furnish an audit report under Section 63. The particulars mandated under Section 63 must also be furnished in Form No. 26. Further, the rule permits revision of the audit report if, after its submission, payment is made that necessitates recalculation of disallowance under Section 35 or Section 37. Such revised report must be obtained from an accountant, duly signed and verified, and furnished before the end of the financial year succeeding the relevant tax year. Rule 48 specifies recognised electronic payment modes for the purposes of Schedule VIII and certain sections of the Act, including Credit Card, Debit Card, Net Banking, IMPS, UPI, RTGS, NEFT, BHIM Aadhaar Pay, and Tier-III Full KYC Central Bank Digital Currency wallets, including wholesale and cross-border CBDC.

Extract of Rule No. 47 and 48 of Draft Income-tax Rules, 2026

Rule 47

Report of audit of accounts to be furnished under section 63.

(1) The report of audit of the accounts of a person required to be furnished under section 63 shall,—

(a) in the case of a person who carries on business or profession and who is required by or under any law other than Income-tax Act, 2025 to get his accounts audited, be in Form No. 26;

(b) in the case of a person who carries on business or profession, but not being a person referred to in clause (a), be in Form No. 26.

(2) The particulars which are required to be furnished under section 63 shall be in Form No. 26.

(3) The report of audit furnished under this rule may be revised by the person by getting revised report of audit from an accountant, duly signed and verified by such accountant, and furnish it before the end of the relevant financial year succeeding the tax year for which the report pertains, if there is payment by such person after furnishing of report under sub-rules (1) and (2) which necessitates recalculation of disallowance under section 35 or section 37.

Rule 48

Other electronic modes of payment.

For the purposes of Schedule VIII [Table: Si. No 1 clause (e) of column (D)], section 66(32), section 146(5)(a)(ii)(B), sections 185, 186 and 188, the other electronic modes of payment shall be the following:—

(a) Credit Card;

(b) Debit Card;

(c) N Banking; Draft Income-tax Rules, 2026 60

(d) IMPS (Immediate Payment Service);

(e) UPI (Unified Payment Interface);

(f) RTGS (Real Time Gross Settlement);

(g) NEFT (National Electronic Funds Transfer);

(h) BHIM (Bharat Interface for Money) Aadhaar Pay, and

(i) Tier-III: Full KYC Central Bank Digital Currency wallets, P-CBDC, Wholesale/Crossborder CBDC.