Rule 171: Special audit and inventory-valuation report forms
Rule 171 prescribes two report forms for the separate section 268(5) directions: Form 100 for the accounts audit and Form 101 for inventory valuation. The report type follows the direction actually made.
Official notified Income-tax Rules, 2026Need advice on Rule 171?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
On this page
Bare law
Rule 171 - Forms for report of audit or inventory valuation under section 268(5)
(1) The report of audit of the accounts of an assessee, which is required to be furnished under section 268(5)(i), shall be in Form No. 100.
(2) The report of inventory valuation of an assessee, which is required to be furnished under section 268(5)(ii), shall be in Form No. 101.
Rule breakdown
Accounts audit: Form 100
The audit of an assessee’s accounts required under section 268(5)(i) is reported in Form 100.
Identify the actual direction, covered period and scope before preparing or reviewing the report.
Inventory valuation: Form 101
The inventory valuation required under section 268(5)(ii) is reported in Form 101.
Do not treat this as the same report merely because both arise during the section 268 process.
Check the direction and parent procedural conditions
Read the current Act for the appointment, scope, time allowed and applicable procedural conditions. Rule 172 separately addresses the expense-determination framework.
Retain the direction, supporting records, report and submission evidence. The form rule alone does not prescribe every deadline or expense responsibility.
Key takeaways
Form 100 for accounts audit
The cited clause (i) report has its own form.
Form 101 for inventory valuation
Clause (ii) uses a different report.
Practical checklist
- Match the report to the actual direction.
- Use the current prescribed form.
- Retain the report and submission evidence.
Avoid
- Do not interchange Forms 100 and 101.
FAQs
Which form is used for inventory valuation?
Form 101.
Is Form 100 the ordinary return form?
Here it is the report prescribed for the section 268(5)(i) audit of accounts.
Does this rule itself state the whole special-audit procedure?
No. It supplies the report forms; the Act and related rules govern the broader process.
Glossary
- Form 101
- The report form prescribed for the specified inventory valuation.