Quick Summary
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
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FAQ :
The new forms are Form Nos. 56 and 57 for Master File reporting, and Form Nos. 58, 59, and 60 for Country-by-Country Reporting (CbCR) under the Income-tax Act, 2025.
The new compliance system and revised forms will come into effect from April 1, 2026.
Constituent entities of an international group must file Form 56 if consolidated group revenue exceeds INR 500 crore and aggregate international transactions exceed INR 50 crore, or intangible property transactions exceed INR 10 crore.
Form 59 must be filed if the consolidated group revenue of the international group exceeds INR 6,400 crore.
The new forms aim to simplify filing procedures, standardise reporting, reduce compliance burdens, improve transparency in transfer pricing, and enhance data consistency for multinational groups.
Yes, the new forms are designed as 'smart forms' with dropdown options and structured reporting formats to reduce ambiguity and improve accuracy.
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