Form 21 Income Tax Rules 2026 pdf download and Key points
FORM NO. 21
[See rule 37(7)]
Form for notification of agricultural extension project under section 47(1)(a)
Under the Income-tax Rules, 2026, Form No. 21 replaces the erstwhile Form 3CP. It is governed by Section 47(1)(a) of the Income-tax Act, 2025, and Rule 37.
Here are all the key points regarding Form No. 21:
1. Purpose of the Form Form 21 is an official notification form, rather than an application. It is used by the Central Board of Direct Taxes (CBDT) to formally notify an approved Agricultural Extension Project in the Official Gazette. It specifies the approved Tax Year(s), lays down the terms, conditions, and expenditure limits, and formally enables the tax benefits linked to the project under Section 47(1)(a).
2. Issuance (Who Issues and Receives It)
- Not Filed by Assessee: The taxpayer does not file Form 21.
- Issued By: It is issued by the CBDT after the assessee’s application (submitted in Form 20) is examined, approved, and found eligible under Rule 37.
- Circulation: Once published in the Official Gazette, copies of Form 21 are circulated to the applicant, the Ministry of Agriculture and Farmers Welfare, the Jurisdictional Commissioner of Income-tax, the State Department of Agriculture, and the Agricultural Technology Management Agency (ATMA) of the concerned district.
3. Validity and Renewal
- Validity: The notification granted via Form 21 is valid for a period not exceeding three Tax Years.
- Renewal: An assessee wishing to extend the notification must apply for renewal at least three months before the existing approval period expires.
4. Key Eligibility Criteria Notified For a project to be successfully notified in Form 21, it must strictly meet the following criteria:
- It must be for the training, education, and guidance of farmers.
- It must have prior approval from the Ministry of Agriculture and Farmers Welfare.
- The expected expenditure (excluding land or building costs) must exceed ₹25 lakh.
5. Structure and Contents of the Form Some information in Form 21 is auto-populated from the initial Form 20 application and departmental records. The final form captures:
- Applicant Details: Name, PAN, address, and the reference number/date of the original application.
- Project Details: Title, purpose, date of commencement, and duration in months.
- Financials & Scope: The approved Tax Year(s), estimated total project expenditure (excluding land/building), and any charges proposed to be collected from the beneficiaries.
- Conditions: Specific statutory conditions and terms imposed on the project.
6. Authentication The form is authenticated by the signature of an authorized CBDT officer and through its official publication in the Gazette of India.
7. Post-Notification Compliance and Revocation
- Strict Compliance: Following the issuance of Form 21, the assessee must comply with all conditions mentioned in the notification, ensure project funds are used exclusively for approved purposes, and maintain proper records for monitoring.
- No Revision: Once issued and published, Form 21 cannot be voluntarily revised or withdrawn by the applicant.
- Revocation: The CBDT holds the power to revoke the notification if the assessee ceases project activities, if the activities are found to be not genuine, or if any conditions of the approval or Rule 37 are violated.