Form 56F of the Income Tax Act
- Rashmita Choudhary
- Dec 7, 2025
- 5 min read
Introduction
The Income Tax Act promotes exports through Section 10AA, but previously, the reporting for this deduction was a bit of a mess due to a lack of standardization. Form 56F has improved transparency and expedited the procedure to address this. This form is essentially a report from a practicing Chartered Accountant that details the entity registered under SEZ, along with the export turnover, total turnover, and the exemption claimed under Section 10AA. Now, it is mandatory for all units claiming deductions under Section 10AA to file Form 56F. The CBDT made this move to help ease the filing process for taxpayers who often struggle to get their accountant's report in on time.
Table of Contents
What is Form 56F of the Income Tax Act
Form 56F, as outlined in the Income Tax Act, is an electronic form designed for taxpayers looking to claim deductions under Section 10AA. This form was introduced by the government in October 2023, in accordance with Rule 16D of the Income Tax Rules established in 1962. According to Section 10AA(8) in conjunction with Section 10A(5), if you're a taxpayer looking to claim the deduction under Section 10AA, you'll need to submit a report prepared by a Chartered Accountant. Starting from October 2023, this report must be filed by the taxpayer using Form 56F. The form includes important information about the business, such as its name, address, the location of the relevant SEZ, and the amount of deduction claimed under Section 10AA of the Income Tax Act.
Applicability of Form 56F
If you want to claim deductions under Section 10AA, you’ll need to submit Form 56F.
As outlined in section 10AA, companies operating within a Special Economic Zone can claim an exemption on profits from their export turnover for the year, provided they earn income from manufacturing or service exports.
People can take advantage of these deductions within a 10-year window starting from when they began their operations or production.
Eligibility for Filing Form 56F
Applicants who meet the requirements for deductions under Section 10AA can submit Form 56F. Here’s what you need to know about the criteria:
According to Section 2(j) of the 2005 Special Economic Zone Act, the business needs to be registered.
Production has to start on or after April 1st, 2006.
Deductions under Section 10AA won’t apply if you’re moving machinery from an existing business to a new one.
If SEZ entities have already taken advantage of deduction benefits over the past decade, they won’t be able to claim this tax relief.
Form 56F Due Date
Generally, the due date for filing Form 56F aligns with the deadline for the audit report under Section 44AB of the Income Tax Act, 1961, set for September 30th of the assessment year. In some situations, the Central Board of Direct Taxes (CBDT) pushes back the due date to help taxpayers who are having a tough time meeting their obligations. For the Financial Year (FY) 2023-24, which corresponds to Assessment Year 2024-25, the new deadline is now March 31, 2025, according to CBDT Circular No. 02/2025. Taxpayers need to ensure they submit their returns on time to qualify for deductions under Section 10AA and to avoid penalties or loss of benefits.
Steps to File Form 56F
You can now file Form 56F online, thanks to the Income Tax Department! Here’s a quick guide on how to navigate the Income Tax Portal for your online submission of Form 56F.
Step 1: Visit the official website for filing income taxes online.
Step 2: Register on the e-filing portal if you have not previously, or use your current login information.
Step 3: Once logged in, navigate to the e-filing section. It could be named "e-File" or "Income Tax Forms," depending on the layout of the website.
Step 4: To file income tax forms, go to the e-filing area. Specifically, look for Form 56F, which may be labeled "Report under section 10AA."
Step 5: A fillable version of Form 56F will be available through the e-filing site. Take your time and complete the relevant fields. After you’ve filled everything out, submit the form electronically.
Conclusion
To encourage exports, the Income Tax Act includes a deduction under Section 10AA. In the past, there was some confusion due to the absence of a standard format for reporting this deduction. However, in October 2023, the Central Board of Direct Taxes (CBDT) rolled out Form 56F to address this issue. This new form ensures clarity and makes the reporting process much smoother. It is for businesses looking to claim the Section 10AA deduction. Now, these companies must submit the required accountant's report, previously mandated by Sections 10AA(8) and 10A(5), using Form 56F. This update streamlines the process and takes some of the stress out of filing for companies.
Frequently Asked Questions
What is the Form 56F rule?
Form 56F is the new Rule 16D in the Income-tax Rules established in 1962. It highlights that if taxpayers want to take advantage of deductions under section 10AA for units located in SEZ, whether they’re engaged in manufacturing or offering services, they must submit Form 56F.
When should Form 56F be filed?
Taxpayers are required to file Form 56F one month before the due date for their income tax returns.
Is Form 56F omitted?
The CBDT notified Form 56F in October 2023, and it will be relevant for the assessment year 2025-26.
Who needs to file Form 56F?
Taxpayers who want to take advantage of deductions under Section 10AA for things such as operating ships or producing goods in the previous financial year must submit Form 56F.
Can I revise Form 56F?
Absolutely! You can definitely revise Form 56F. You can revise Form 56F, but it has to be done by December 31st of the assessment year. It allows entities to correct any information they submitted when claiming deductions under Section 10AA.
What happens if Form 56F is not filed on time?
Missing the deadline to submit Form 56F can result in disqualification from Section 10AA tax deductions, leading to a bigger tax bill for you.
What business details are to be included in Form 56F?
Form 56F includes several vital details, including the taxpayer's name and address, the deduction claimed, and the SEZ's location.
Can I file Form 56F without a CA?
Filing Form 56F requires the expertise of a Chartered Accountant.
Can I file Form 56F for a business that is not registered under the SEZ Act?
You can't file the 56F Form for income tax if your business lacks registration under the SEZ Act. Without that registration, you won't qualify for the deduction under Section 10AA of the Income Tax Act.
When was Form 56F introduced?
For taxpayers claiming deductions under Section 10AA of the Income Tax Act, Form 56F became effective in October 2023.
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