/ Direct Tax

CBDT extended Form 56F Deadline for AY 2024-25 to 31 March

Income tax form 56

CBDT extended the deadline for filing Form No. 56F for AY 2024-25 to March 31, 2025.

  • CBDT has extended the deadline for filing Form No. 56F for the AY 2024-25 to March 31, 2025. This extension provides additional time for taxpayers to submit the required accountant’s report necessary to claim exemptions u/s 10A & 10AA of the Income-tax Act, 1961. Taxpayers seeking exemptions u/s 10A and 10AA should ensure that Form No. 56F is filed by the new deadline to remain compliant and benefit from the available tax exemptions.
  • The deadline for filing Form No. 56F for AY 2024-25 has been extended to March 31, 2025. The extension addresses difficulties faced by taxpayers and stakeholders in obtaining and filing the accountant’s report within the original timeframe. CBDT exercised its powers u/s 119(2)(b) of the Income-tax Act, 1961, to grant this extension, aiming to alleviate genuine hardship for taxpayers.
  • Previous Due Date: The due date for filing Form 56F was aligned with the tax audit deadline under Section 44AB.
  • New Due Date: The deadline has now been extended to March 31, 2025, providing additional time for compliance. The extension applies to all eligible SEZ units required to file Form 56F for Assessment Year 2024-25.

Form No. 56F for AY 2024-25 to March 31, 2025

Impact of Extension Deadline on Section 10AA on Pvt Ltd companies, mainly who operating in SEZs: 

  • Tax Exemptions for SEZ Units: 100% tax exemption on export income for the first 5 years. 50% exemption for the next 5 years. and further tax relief in the following period.
  • Encouragement for SEZ Investments: SEZs offer capital gains exemptions, making them attractive for businesses. Startups focusing on exports benefit from lower tax liabilities in the initial years.
  • Connection to Form 56F Extension: Form 56F is an accountant’s report that SEZ units must file to claim tax deductions under Section 10AA.  This provides SEZ units and their accountants additional time to ensure compliance and avoid penalties.
  • Compliance Requirements for Private Companies: Maintain records of export income. File tax returns on time. and Ensure SEZ unit qualify under government guidelines.
  • Risk of Losing Benefits: Non-compliance with SEZ conditions can lead to denial or reduction of tax benefits.
  • Businesses & Chatered Accountants now have more time to prepare and submit Form 56F without penalties. Units claiming tax deductions under Section 10AA can ensure proper documentation and verification. The extension helps maintain consistency in tax compliance timelines. For detailed information, refer to CBDT Circular No. 2/2025.

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