Income Tax Update: CBDT Enables E- Filing Form 56F for A.Y. 2023-24

The Central Board of Direct Taxes (CBDT) has enabled the E-Filing Form 56F for the Assessment Years 2023-24 on 6th November 2023. The income tax portal states that “E-filing of Form 56F for A.Y. 2023-24 is enabled through online mode. Please note that form is renotified Vide notification no.91/2023 dated oct 19, 2023.” The CBDT vide newly issued notification no. G.S.R. 786(E)  issued on 19th October 2023 has mandated the submission of an audit report in Form 56F for claiming deductions under Section 10AA of income Tax Act, 1961, which must be prepared by a Chartered Accountant. Read More: CBDT Introduces new Form No. 56F to be Furnished by Assessee from Accountant u/s 10AA(8); Amends Income Tax Rules This notification has been deemed to take effect from July 29th 2021, coinciding with the removal of the obligation to submit Form 56F for Section 10A deductions on the same day.

The deadline to furnish the Form 56F has been extended by the board to 31st December 2023. The notification has also certified that no person will be adversely affected by giving retrospective effect to the Income-tax (Twenty Sixth Amendment) Rules, 2023. The new Rule 16D of Income Tax Rules, 1962 explicitly outlines the obligation for taxpayers to furnish a report, which must be prepared by a qualified accountant. It should be submitted in accordance with Section 10AA(8) of the Income Tax Act and is closely linked to sub-section (5) of Section 10A within the same act. Crucially, the report must strictly adhere to the prescribed format laid out in Form No. 56F. Read More:  Chartered Accountant-Certified Form No. 56F for SEZ Businesses: Everything You Need to Know Submitting the audit report in Form 56F, duly certified by a Chartered Accountant, is a legal requirement. Failure to comply with this requirement results in the taxpayer becoming ineligible for the income tax deduction provided under Section 10AA of the Income Tax Act.

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