CBDT notifies Form No. 56F for Assessees Seeking Deduction under Section 10AA of IT Act

The Central Board of Direct Taxes (CBDT) has notified new Form 56F for Assessees who are seeking deduction under Section 10AA of Income Tax Act 1961 via issuing a notification.

Section 10AA of the Act provides for an income tax deduction for industrial undertakings that began producing goods or operating ships during the previous year. The deduction is available for a period of ten years beginning with the start of production or operation.

The Notification stated:

In exercise of the powers conferred by sub-section (5) of section 10A read with sub-section (8) of section 10AA and section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962.

These rules may be called the Income-tax (Twenty-Sixth Amendment) Rules, 2023. They shall be deemed to have come into force from the 29th day of July, 2021.

In the Income-tax Rules, 1962 (hereinafter referred to as principal rules), after rule 16CC, the following rule shall be inserted, namely:––

“16D. Form of report for claiming deduction under section 10AA.—The report of an accountant which is required to be furnished by the assessee, under sub-section (8) of section 10AA read with sub-section (5) of section 10A shall be in Form No. 56F.”.

3. In the principal rules, in rule 130,–

(a) in sub-rule (1), the figures and letter“16D”, shall be omitted;

(b) in sub-rule (2), the figures and letter“56F”, shall be omitted.

In the principal rules, in Appendix II, after Form No.56E [as it stood immediately before its omission by the Income-tax (21st Amendment) Rules, 2021], Form 56F shall be inserted.

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