Schedule 80LA – Deduction in respect of Offshore Banking Units or IFSC AY 2026-27

Schedule 80LA – Deduction in respect of Offshore Banking Units or IFSC AY 2026-27

‘Schedule 80LA’ in the Income Tax Return (ITR) form applies to assessees claiming deduction under Section 80LA of the Income-tax Act, 1961. This section provides deductions to scheduled banks and foreign banks with offshore banking units in a Special Economic Zone (SEZ) and units of an International Financial Services Centre (IFSC).

A scheduled bank or a foreign bank having an offshore banking unit in an SEZ is eligible to claim 100% deduction of income for 10 consecutive assessment years. In the case of a unit of an IFSC, 100% of the income is deductible for any 10 consecutive assessment years out of 15 years, at the option of the assessee.

This schedule requires information such as the type of entity, nature of income earned by the unit, authority granting the registration, date and registration number, the first assessment year in which the deduction is claimed, and the amount of deduction claimed for the current year.

Section 80LA of the Income-tax Act, 1961

A Schedule Bank or a foreign Bank or a unit of IFSC is eligible to claim deduction under section 80LA. In case of a bank, 100% of the income is deductible for 10 consecutive assessment years. In case of a unit of an IFSC, 100% of income is deductible for 10 consecutive assessment years out of 15 years.

This schedule applies to ITR-5 and ITR-6.