Income tax department has announced Form No. 56FF to claim deduction under section 10A(1b)(b) w.e.f. 29.07.2021 vide notification no. 140 of 2021 Dt. 29.12.2021.
This form needs to be filed to claim deduction under section 10A sub-section (1A) by establishment established in free trade zone in relation profit credited to a special reserve. Relevant extract of the provision is as under:
“for the next three consecutive assessment years, so much of the amount not exceeding fifty per cent of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the “Special Economic Zone Re-investment Allowance Reserve Account”) to be created and utilised for the purposes of the business of the assessee in the manner laid down in sub-section (1B)”.
Relevant extract of the notification i.e. Notification 140/2021 is as under:
“In exercise of the powers conferred by sub-section (5) of section 10A read with 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, namely:─
1. Short title and commencement. –– (1) These rules may be called the Income-tax (35th Amendment) Rules, 2021.
(2) They shall be deemed to have come into force from the 29th day of July, 2021.
2. In the Income-tax Rules, 1962 (hereinafter referred to as principal rules), after rule 16D, the following rule shall be inserted, namely:––
“16DD. Form of particulars to be furnished along with return of income for claiming deduction under clause (b) of sub-section (1B) of section 10A.–The particulars, which are required to be furnished by the assessee along with the return of income under clause (b) of sub-section (1B) of section 10A shall be in Form No. 56FF.”
3. In the principal rules, in rule 130,–
(a) in sub-rule (1), the figures and letters “16DD” shall be omitted;
(b) in sub-rule (2), the figures and letters “56FF” shall be omitted.
4. In the principal rules, in Appendix II, after Form No. 56F, the following Form shall be inserted, namely:
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[Notification No. 140 /2021/F. No. 370142/59/2021-TPL]
ANKIT JAIN, Under Secy.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Subsection (ii) vide notification number S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification number G.S.R. 883 (E), dated 27th December, 2021.
Explanatory Memorandum:– Rule 130 was brought into force from the 29th day of July, 2021 where reference to rule 16DD in sub-rule (1) thereof and Form 56FF in sub-rule (2) thereof were inadvertently mentioned. The intention of the Board is to continue with the rule 16DD and Form 56FF. Hence, it is proposed to give retrospective effect to maintain continuity. It is certified that no person is being adversely affected by granting retrospective effect to this notification.”
To read full notification CLICK HERE.
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