Form 177 Income Tax Rules 2026 pdf download and Key points
FORM NO. 177
[See rule 283]
Statement of eligible investment received
1. Purpose and Scope
Form 177 is an audit report required when a non-resident taxpayer claims that their actual profits and gains are lower than the “deemed profits” specified under the presumptive taxation sections of the 2025 Act (the new equivalents of old Sections 44B, 44BBA, etc.).
2. Who Must File?
Non-resident assesses engaged in the business of operation of ships or aircraft.
Foreign companies engaged in civil construction or the business of erecting plant and machinery in connection with a turnkey power project.
The form is mandatory only if the non-resident’s income exceeds the maximum amount not chargeable to tax and they claim their actual profit is less than the presumptive rate (usually 7.5% to 10% depending on the sector).
3. Role of the Accountant (CA)
As a Chartered Accountant, you must certify that you have examined the books of account and that the financial statements reflect a true and fair view of the non-resident’s Indian operations. You must specifically verify:
Gross Receipts: Total amount received or deemed to be received in India.
Expenditure: Whether the expenses claimed are directly attributable to the Indian business.
4. Core Information Required in the Form
Panel A: Basic details of the assessee (Name, Address in India & Abroad, PAN, and Tax Year).
Panel B: Specifics of the business (e.g., Number of voyages for shipping, flight details for aircraft).
Panel C: Detailed computation of the actual profit vs. the presumptive profit.
Audit Certificate: The formal sign-off confirming the correctness of the figures.
5. Due Date
Form 177 must be furnished one month prior to the due date for furnishing the return of income under Section 139(1) of the Act. For most non-residents subject to audit, this typically falls on September 30 of the Tax Year.
Comparison for Your Practice (Satbir Singh & Associates)
| Feature | Old Framework (1961 Act) | New Framework (2025 Act) |
| Applicability | Presumptive Non-Resident Audit | Presumptive Non-Resident Audit |
| Form Number | Often handled via Form 3CB-3CD | Form 177 (Standalone) |
| Primary Sections | 44B, 44BB, 44BBA, 44BBB | Sections 173–177 (Relevant Cluster) |