Form 71 Income Tax Rules 2026 pdf download and Key points

Last Updated on: April 23, 2026

Form 71 Income Tax Rules 2026 pdf download and Key points

FORM NO. 71
[See rule 142]
Verification by an accountant for computation of exempt income of specified fund, attributable to the investment division of an offshore banking unit, for purposes of Schedule VI to the Act

Under the Income-tax Rules, 2026, Form No. 71 replaces the erstwhile Form 10-IL. It is governed by Section 11 read with Schedule VI [Table: Sl. Nos. 1 to 4] and Section 210(3) of the Income-tax Act, 2025, and is prescribed under Rule 142 of the Income-tax Rules, 2026.

Here are all the comprehensive key points regarding Form No. 71:

1. Purpose of the Form Form 71 is the statutory Audit Report for a registered investment division of an offshore banking unit. Its primary purpose is to certify that the investment division has maintained separate books of accounts, had them duly audited, and fulfilled all other prescribed eligibility conditions required to successfully claim tax exemption or taxation at a concessional rate on its eligible income.

2. Applicability (Who Should File and Verify)

Unlike typical taxpayer forms, Form 71 must be filed and formally verified by the Accountant (Auditor) who has audited the separate books of accounts of the eligible investment division.
Is it mandatory? Yes, filing a valid Audit Report in Form 71 within the specified time limit is a strict, mandatory condition for the specified fund to make an admissible claim for these tax benefits.

3. Frequency and Due Date

Due Date: Form 71 has a strict advance deadline. It must be filed electronically at least one month prior to the “due date” for filing the return of income as prescribed under Section 263(1)(c) of the Income-tax Act, 2025.

4. Structure of the Form The form is structured to capture both the entity’s details and the auditor’s certifications:

Part A (Basic Details): Captures the details of the assessee/specified fund (Name, Address, Permanent Account Number) and specific details of the offshore banking unit to which the eligible investment division belongs, along with the relevant Tax Year.
Part B (Audit Verification): The auditor verifies the examination of the books of accounts and affirms the fulfillment of each prescribed eligibility condition (using ‘Yes/No’ remarks from a drop-down menu).
Declaration: The accountant must explicitly provide their membership number, the Unique Document Identification Number (UDIN) of the audit report, and the details of their audit firm.

5. Documents and Information Required While the accountant may require extensive documentation to prepare the audit report—such as the SEBI Category-I FPI registration certificate, annual financial statements, bank statements, Foreign Inward Remittance Certificates (FIRC), statement of securities, and the Unit Holders Register—it is not mandatory to attach any document with the final submission of Form 71.

6. Mode of Filing and Processing

Online Only: Form 71 must be submitted electronically on the Income Tax e-Filing portal.
Verification: The application must be digitally signed (using a DSC) or verified through an Electronic Verification Code (EVC) exclusively by the accountant.
Mandatory PAN: The form cannot be submitted without a valid PAN for the specified fund.
No Edits Allowed: Once validly submitted, verified, and an acknowledgment is generated, the form cannot be edited.

7. Key Updates in the 2026 Rules

UDIN Integration: The declaration part of the form now specifically captures the membership number of the auditor and the UDIN to ensure authenticity.
Simplified Language: The overall language of the form has been simplified for an improved applicant experience, as the existing Form 10-IL (introduced in 2022) did not require major systemic overhauls.

1: What is Form 71 ?
Ans: Form 71 is the prescribed form for filing the audit report prescribed under Rule 142 of the Income Tax Rules, 1962. A specified fund, in order to claim exemption, or benefit of taxation at concessional rates, in respect of eligible income attributable to the investment division of an offshore banking unit, is also required to fulfil certain other eligibility conditions, as prescribed in
the rule. These eligibility conditions inter-alia include maintenance of separate books of accounts for the registered investment division, getting the accounts audited by an accountant, maintaining other relevant documentation, and filing of such audit report in the prescribed form on or before the specified date (i.e. one month prior to the due date for filing return of income).
2: Who should file Form 71?
Ans: The accountant, who has audited the book of accounts of the eligible investment division of the offshore banking unit, is required to file this audit report, certifying the correctness of the separate accounts maintained by the investment division and affirming the fulfillment of other eligibility conditions, as stipulated in Rule 142.
3. Who is required to verify the Form 71?
Ans. The accountant, who has audited the book of accounts of the eligible investment division of the offshore banking unit, is required to verify that he has examined the books of accounts of the eligible investment division, and also affirm that such investment division fulfils other eligibility conditions to claim the benefit of exemption, or taxation at concessional rates. The accountant is also required to mention his membership number, the UDIN of the audit report, and details of his audit firm.
4: Where and how the Form 71 is required to be filed?
Ans: The Form 71 shall be filed electronically on the e-filing portal of Income-tax Department. The form shall be duly verified, either under digital signature or through electronic verification code, by the accountant.
5: What is the time limit for filing Form 71?
Ans: The audit report in Form 71 is required to be filed electronically, at least one month prior to such “due date” for filing return of income prescribed under section 263(1)(c) of the ITA’ 2025, as may apply for the specified fund claiming the benefit of exemption, or taxation at concessional rates. This time limit is specified in the relevant rules.
6: What documents are required to file Form 71?
Ans: The following documents may be required while filing Form 71, –
 A copy of Trust deed, or Memorandum of Association, or any other legal instrument evidencing the formation of the fund
 Copy of SEBI Category-I FPI registration certificate
 Annual financial statements of the specified fund for the relevant tax year
 Audited financial statements of the eligible investment division of the offshore banking unit for the relevant tax year
 Bank statements, Foreign Inward Remittance Certificate, and settlement advisories
 Statement of securities (held during the year and transactions executed) including income earned on securities held and gain arising on transfer of securities
 Details of Unit Holders with number of units held by them and their classification by residency status i.e. resident or non-resident
7. Is Form 71 mandatory?
Ans: Filing of a valid Form 71 within the specified time limit, is one of the mandatory conditions for making an admissible claim of exemption, or taxation at concessional rates, by a specified fund, in respect of income which is attributable to investment division of an offshore banking unit, under the aforementioned provisions.
8: Can I edit Form 71 after submission?
Ans: No. Once Form 71 is validly submitted, after verification by the accountant, and acknowledgment is generated, it cannot be edited. Please ensure that all details are correct before final submission.
9: Do I need to attach any document with the Form 71?
Ans: No. It is not mandatory to attach any document with the Form 71.
10: While filling Part A and Part B, can I leave any field blank?
Ans:
 PAN of the Specified Fund is mandatory. Name and complete address thereof shall be prefilled, which can be updated by the user. Status is pre-filled.
 Details of the offshore banking unit are mandatory fields.
 In Part B, only the applicable remarks (Yes/No) are to be selected from the drop-down menu.
11: What if the specified fund does not have a PAN?
Ans: Form 71 cannot be submitted without a valid PAN of the specified fund.
12: Can Form 71 be filed offline?
Ans: No. Form 71 can only be submitted online through the Income Tax e-Filing portal.
13: Why is Form 71 important?
Ans: Filing of a audit report in Form 71 within the specified time limit is one of the mandatory compliance for claiming the benefit of tax-exemption, or taxation at concessional rates, by the specified fund, in respect of the eligible income of the investment division of an offshore banking unit, under section 11 read with Schedule VI [Table: Sl. Nos. 1 to 4] and section 210(3) of the ITA 2025. However, the claim of benefit of exemption (as also taxation at concessional rates) is further subject to fulfillment of various other eligibility conditions, as prescribed in the statute and relevant rules.

Form 71 Income Tax Rules 2026 pdf download and Key points

Form 71 Income Tax Rules 2026 pdf download and Key points

Form 71 Income Tax Rules 2026 pdf download

Form No.71– Frequently Asked Questions

Guidance Note on Form 71