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The Income Tax Department has clarified important compliance requirements relating to Form 71, a crucial audit reporting form applicable to specified funds claiming tax exemption or concessional taxation benefits for offshore banking investment divisions. As tax reporting under the new Income Tax f
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FAQ :
Form 71 is an audit verification form prescribed under Rule 142 of the Income Tax Rules, 2026. It's used to compute and verify exempt income for the investment division of an offshore banking unit, linking to specific sections of the Income Tax Act, 2025.
Form 71 must be filed by the accountant who audits the books of accounts for the eligible investment division of an offshore banking unit. They certify the accounts and confirm compliance with eligibility conditions.
Form 71 can only be filed electronically via the Income Tax Department's e-filing portal. The accountant must verify it using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
The audit report in Form 71 must be filed at least one month before the due date for filing the income tax return, as per Section 263(1)(c) of the Income Tax Act, 2025.
No, once Form 71 is successfully submitted and an acknowledgement is generated, no editing or revisions are permitted.
Yes, a valid PAN of the specified fund is mandatory for submitting Form 71. PAN details are essential and many fields are auto-filled during the filing process.
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