The Income Tax Department has rolled out a new simplified reporting framework for multinational enterprises (MNEs) by introducing revised Master File and Country-by-Country Reporting (CbCR) forms under the Income-tax Act, 2025. The new compliance system will come into effect from April 1, 2026.
The initiative is aimed at improving tax transparency, standardising transfer pricing disclosures, and reducing compliance complexity for global business groups operating in India. The revised framework includes Form Nos. 56, 57, 58, 59 and 60, replacing the earlier filing structure with a more streamlined and technology-driven process.
What Are the New Forms?
According to the Income Tax Department’s brochure, Form Nos. 56 and 57 relate to the Master File requirement, while Form Nos. 58, 59 and 60 deal with Country-by-Country Reporting (CbCR).
Key Forms Introduced
- Form 56: Master File reporting by constituent entities of an international group
- Form 57: Intimation by designated constituent entity
- Form 58: Intimation regarding alternate reporting entity or parent entity
- Form 59: Country-by-Country Report (CbCR)
- Form 60: Designation of a single Indian constituent entity for CbCR filing
The department stated that the forms are designed to ensure easier compliance and greater standardisation in transfer pricing reporting.
Who Needs to File Form 56?
Every constituent entity of an international group must file Form No. 56 if:
- Consolidated group revenue exceeds INR 500 crore; and
- Aggregate international transactions exceed INR 50 crore, or transactions involving intangible property exceed INR 10 crore during the accounting year.
However, even where these thresholds are not met, Part A of Form 56 may still need to be furnished under Rule 123(3).
CbCR Filing Threshold Under Form 59
Form No. 59, which relates to Country-by-Country Reporting, must be filed where the consolidated group revenue of the international group exceeds INR 6,400 crore.
The filing obligation generally applies to:
- Parent entities resident in India
- Alternate reporting entities resident in India
- Certain Indian constituent entities where the parent entity is located in jurisdictions lacking exchange agreements or where systemic failures exist.
Important Due Dates
The brochure also clarifies the timelines for filing the various forms:
| Form | Due Date |
|---|---|
| Form 56 | Same as income tax return filing due date under Section 263(1)(c) |
| Form 57 | At least 30 days before Form 56 due date |
| Form 58 | Two months before Form 59 due date |
| Form 59 | Within 12 months from end of reporting accounting year |
| Form 60 | At least 30 days before Form 59 filing due date |
Smart Filing Features Introduced
The Income Tax Department has highlighted that the new forms are designed as “smart forms” with dropdown options and structured reporting formats to reduce ambiguity and improve accuracy in filing.
The key expected benefits include:
- Simplified filing procedures
- Standardised reporting structure
- Reduced compliance burden
- Improved transparency in transfer pricing disclosures
- Better data consistency for multinational groups
Focus on Global Tax Transparency
The revised reporting mechanism aligns with international transfer pricing and BEPS (Base Erosion and Profit Shifting) standards aimed at improving tax transparency across jurisdictions. Through Master File and CbCR disclosures, tax authorities receive a clearer picture of how multinational groups allocate profits, taxes, assets and business activities globally.
The introduction of these simplified forms signals the government’s continued focus on digitisation and structured compliance under the new Income-tax Act, 2025.
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