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The Central Board of Direct Taxes (CBDT) has released a comprehensive set of Frequently Asked Questions (FAQs) on Form No. 27, providing clarity on the reporting requirements related to capital assets that remain with a specified entity following its dissolution or reconstitution under the Income-tax Act, 2025. The FAQs aim to help taxpayers, partnerships, LLPs, and other specified entities understand their compliance obligations under Section 67(10) of the Income-tax Act, 2025, which correspon
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FAQ :
Form No. 27 is prescribed under Rule 50 of the Income-tax Rules to report the income attributable to capital assets that remain with a specified entity after its dissolution or reconstitution.
Every specified entity must file Form No. 27 if a specified person receives any capital asset or stock-in-trade during a tax year in connection with the entity's dissolution or reconstitution, and income is taxable under Section 67(10).
Form No. 27 must be submitted electronically along with the specified entity's income tax return for the tax year in which the dissolution or reconstitution event occurs.
Yes, a valuation report from a registered valuer is mandatory and must be uploaded when filing Form No. 27 to support the attribution of taxable income to capital assets.
Failure to file Form No. 27 or providing incorrect information can lead to disputes in capital gains computation, denial of deductions, and potential proceedings under the Income-tax Act.
No, Form No. 27 can only be filed electronically and is not available for offline submission.
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