Form 66 Explained (Latest Position Under Indian Income-tax Law – 2026)
Understanding compliance forms under the Income-tax law is essential for companies, especially when dealing with specialized taxation regimes. One such form that often creates confusion is Form 66. With evolving discussions around tax reforms, it is important to clearly distinguish between current law and proposed changes.
This blog provides a fully accurate and up-to-date explanation of Form 66 as per the law currently in force in 2026.
What is Form 66?
Form 66 is a Chartered Accountant-certified report prescribed under the Income-tax Rules for companies opting for the Tonnage Tax Scheme. It is specifically used to certify the computation of income derived from shipping operations under this special taxation framework.
It is important to note that Form 66 is not related to Minimum Alternate Tax (MAT) under the current law.
Legal Framework Governing Form 66
Form 66 is governed by the Income-tax Act, 1961, under the provisions relating to the Tonnage Tax Scheme covered in Chapter XII-G. This scheme provides a simplified method of taxation for shipping companies, where income is calculated based on the tonnage of ships rather than actual profits.
Who Needs to File Form 66?
Form 66 is applicable only to specific entities. It must be filed by shipping companies that have opted for the Tonnage Tax Scheme and are engaged in operating qualifying ships.
It does not apply to all companies, and businesses outside the shipping sector are not required to file this form.
Purpose of Form 66
The primary purpose of Form 66 is to ensure that the income computed under the Tonnage Tax Scheme is accurate and compliant with the law. It helps in certifying the correctness of tonnage income, maintaining transparency, and providing a verified report to the Income Tax Department.
The certification by a Chartered Accountant also adds credibility and ensures that all calculations are in line with statutory provisions.
What is Tonnage Income?
Under the Tonnage Tax Scheme, income is not calculated based on actual business profits. Instead, it is determined using the net tonnage of ships operated by the company.
A fixed rate is applied based on tonnage slabs, making the computation simpler and more predictable compared to regular income calculation methods.
Filing Requirements
Form 66 must be filed electronically and is submitted along with the Income Tax Return. There is no requirement to file it separately in advance, which simplifies the compliance process for eligible companies.
Certification Requirement
Form 66 must be certified by a practising Chartered Accountant. It is also required to be filed using a Digital Signature Certificate (DSC), ensuring authenticity and compliance with filing standards.
Important Clarification: Form 66 vs MAT Reporting
There is often confusion between Form 66 and MAT-related compliance. For clarity, MAT (Minimum Alternate Tax) is governed by Section 115JB, and the relevant form for MAT certification is Form 29B.
Form 66 has no role in MAT reporting and has not replaced Form 29B under the current legal framework.
MAT (Minimum Alternate Tax) – Current Position
Under the present law, MAT applies when the tax payable under normal provisions is lower than the prescribed percentage of book profits. The MAT rate is 15 percent of book profit, with a reduced rate of 9 percent for eligible IFSC units, subject to conditions.
Form 66 is not involved in this process.
When Form 66 is Not Applicable
Form 66 is not required in cases where the company is not a shipping company, has not opted for the Tonnage Tax Scheme, or is only subject to normal tax provisions or MAT.
Common Misconception
A common misconception is that Form 66 is used for MAT reporting or that it has replaced Form 29B under a new tax regime. This is not correct under the law currently in force.
While there may be discussions around tax reforms or a new Income-tax framework, such changes have not been implemented as of now.
Conclusion
Form 66 is a specialized compliance requirement applicable only to shipping companies under the Tonnage Tax Scheme as per the Income-tax Act, 1961. It ensures accurate and certified computation of tonnage-based income and supports transparency in tax reporting.
For MAT compliance, Form 29B continues to be the relevant form. Understanding the distinction between these forms is essential for accurate filing and avoiding errors.
Businesses and professionals should rely only on the current enacted law and verified updates to ensure proper compliance and avoid confusion arising from unconfirmed changes.