Form 56F of Income Tax Act: Due Date, Applicability, How to Fill Form?

The Income Tax Act incentivizes exports through Section 10AA. Previously, reporting for this deduction wasn't standardized, creating ambiguity. Recently, Form 56F has been introduced to streamline the process and ensure transparency. It was issued by the Central Board of Direct Taxes (CBDT) on 19th October 2023 by adding the new Rule 16D in the Income-Tax Rules, 1962. This rule states that taxpayers who need to submit the report of an accountant under Section 10AA(8) along with Section 10A(5), must now do it with Form No. 56F. This move was taken by the CBTD to reduce the hardships of taxpayers who face challenges in filing the accountant's report before the due date.  

For companies which claim deductions under Section 10AA of the Income Tax Act, it is now mandatory to file Form 56F. They need to correctly include all the details and submit it on or before their income tax return filing due date. 

What Is Form 56F?

Form 56F is a mandatory form which need to be filled by taxpayers who claim deduction under Section 10AA of the Income Tax Act. Form 56F will have information like name and address of the taxpayer, location of SEZ, assessment year, amount of deduction claimed, apart from all the business details and these details must be certfied by a Chartered Accountant. 

Form 56F Applicability

All taxpayers who wish to claim deductions under Section 10AA need to file Form 56F. This is applicable for industries that undertake activities like operating ships, goods production etc. in the previous financial year. Individuals can claim these deductions within a period of 10 years from the date of operation or production. 

Form 56F Due Date

The due date for submitting Form 56F is the same as the due date for submitting audit report u/s 44AB, i.e. 30th September of the assessment year. 

Eligibility for Filing Form 56F

Applicants who are eligible to opt for deductions under Section 10AA can file Form 56F. The criteria for the same are as follows:

• The company must have registration under Section 2(j) of the 2005 Special Economic Zone Act. 
• It must have begun production on or after 1^st April 2006. 
• In case of transfer of machinery from a former company to form a new one, deductions under Section 10AA shall not be applicable. 
• If SEZ entities have already claimed deduction benefits in the last 10 years, they will not be eligible to claim this tax relief. 

How to File Form 56F Online?

Taxpayers can file Form 56F Income Tax just like they file any other form via the e-filing portal. Here are the steps:

1. Log on to the e-filing portal
2. Navigate to ‘e-File’ > ‘Income Tax forms’ > ‘File Income Tax Forms’
3. Select Form 56F- Report under section 10AA
4. Add the details and submit.

Can Form 56F Be Revised?

Yes, you may revise Form 56F on or before 31st December of the assessment year.

Form 56F will drastically reduce the challenges which entities had to face while filing their accountant details for claiming deductions as per Section 10AA.