Form 21 Income Tax Rules 2026 pdf download and Key points

Last Updated on: May 3, 2026

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 of Income Tax Rules 2026.

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.

1. What is Form 21?
Ans: Form 21 is an Income-tax notification form issued for an approved agricultural extension project under Section 47(1)(a) of the Income-tax Act, 2025, pursuant to approval granted under Rule 37.
2. What is the purpose of Form 21?
Ans: The primary purpose of Form 21 is to:
 Notify an approved agricultural extension project in the Official Gazette.
 Specify the Tax Year(s) for which the project is approved.
 Lay down the terms, conditions, duration, and expenditure limits applicable to the project.
 Enable tax benefits linked to approved agricultural extension projects under Section 47(1)(a).
3. Who issues Form 21?
Ans: Form 21 is issued by the Central Board of Direct Taxes (CBDT) after satisfaction that the project meets conditions prescribed under Rule 37.
4. When is Form 21 issued?
Ans: Form 21 is issued after Form 20 is examined and approved, and the project qualifies for notification under Section 47(1)(a) of the Income-tax Act, 2025.
5. What details are contained in Form 21?
Ans: Form 21 contains:
 Name, address, and PAN of the applicant.
 Reference number and date of application.
 Title and purpose of the agricultural extension project.
 Date of commencement and duration of the project.
 Approved Tax Year(s).
 Estimated total project expenditure (excluding land/building).
 Charges, if any, proposed to be collected from beneficiaries.
 Specific conditions imposed on the project.
6. Which agricultural extension projects are eligible to be notified under Form 21?
Ans: A project is eligible if:
 It is undertaken for training, education, and guidance of farmers.
 It has prior approval from the Ministry of Agriculture and Farmers Welfare.
 Expected expenditure (excluding land/building) exceeds ₹25 lakh.
 It complies with Rule 37 of the Income-tax Rules, 2025.
7. For how long is an agricultural extension project notified under Form 21?
Ans: The project may be notified for a period not exceeding three Tax Years, as specified in the notification.
8. Can the notification under Form 21 be extended?
Ans: Yes. The assessee may apply for renewal or extension of notification at least three months before expiry of the existing approval period.
9. What happens after Form 21 is issued?
Ans: After issuance:
 The notification is published in the Official Gazette.
 Copies are sent to:
 The applicant
 Ministry of Agriculture and Farmers Welfare
 Jurisdictional Commissioner of Income-tax
 State Department of Agriculture
 Agricultural Technology Management Agency (ATMA)
10. Can Form 21 be revised or withdrawn?
Ans: No. Once Form 21 is issued and published, it cannot be revised or withdrawn, except through revocation proceedings under Rule 37.
11. Under what circumstances can a Form 21 notification be revoked?
Ans: Notification may be revoked if:
 The assessee ceases project activities.
 Project activities are not genuine.
 Conditions of approval are violated.
 Provisions of Rule 37 or Rule 38 are not complied with.
12. Is any compliance required after Form 21 is issued?
Ans: Yes. The assessee must:
 Follow all conditions mentioned in Form 21.
 Ensure project funds are used only for approved purposes.
 Maintain records for monitoring and reporting.
13. Is any information in Form 21 auto-filled?
Ans: Yes. Some information may be auto-populated based on Form 20 and departmental records.
14. How is Form 21 authenticated and verified?
Ans: Form 21 is authenticated through:
 Authorized CBDT officer’s signature.
 Official notification in the Gazette of India.
15. When are UDIN and FRN applicable in relation to Form 21?
Ans:  UDIN (Unique Document Identification Number): Where Chartered Accountant certification supports expenditure or audit reporting, UDIN must be generated and quoted.
 FRN (Firm Registration Number): If certification is issued by an audit firm, the Firm Registration Number (FRN) must be disclosed.
 DSC (Digital Signature Certificate): A valid DSC is required for electronic submission of related filings.
16. What are common reasons for rejection or cancellation of Form 21 notification?
Ans:  Incomplete or misleading project information.
 Failure to meet expenditure thresholds.
 Non-compliance with Ministry approval conditions.
 Violation of notification conditions.
17. What is the objective of Form 21 under the Income-tax Act, 2025?
Ans: Form 21 ensures:
 Formal Government notification of approved agricultural extension projects.
 Transparent disclosure of project scope, duration, and financial limits.
 Effective monitoring and accountability.
 Standardized implementation of Section 47(1)(a) under the Income-tax Act, 2025.

Form 21 Income Tax Rules 2026 pdf download and Key points

Form 21 Income Tax Rules 2026 pdf download

Form No.21– Frequently Asked Questions

Guidance Note on Form 21