Form 22 Income Tax Rules 2026 pdf download and Key points
FORM NO. 22
[See rule 39(2)]
Application for approval of skill development project under section 47(1)(b)
Under the Income-tax Rules, 2026, Form No. 22 replaces the erstwhile Form 3CQ. It is governed by Section 47(1)(b) of the Income-tax Act, 2025, and Rule 39 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 22:
1. Purpose of the Form Form 22 is an application used to seek official approval for a skill development project. Obtaining this approval enables an eligible company to claim tax benefits linked to skill development projects under Section 47(1)(b) of the Act. It ensures transparent reporting and compliance with statutory conditions for vocational skill training.
2. Applicability (Who Should File) The form must be filed by an eligible company (as defined under Rule 40) that is engaged in specified manufacturing or service sectors and is undertaking a skill development project in a separate facility within a training institute.
3. Eligible Training Institutes To qualify, the training institute where the project is undertaken must be:
- Affiliated with or approved by the NCVET (National Council for Vocational Education and Training) or a State Council for Vocational Training.
- Established or certified by Central or State Government authorities, as specified under Rule 40.
4. Frequency and Due Dates
- When to File: It must be filed before undertaking the skill development project.
- Frequency: It is an application form generally filed once per project or when a renewal is sought.
- No Revisions: Once Form 22 is validly filed for a relevant Tax Year, it cannot be revised or withdrawn.
5. Mode of Filing and Verification
- Online Only: The form must be submitted electronically through the Income-tax e-Filing portal; offline filing is not permitted.
- Verification: It must be verified using a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).
- Accountant Requirements: If financial or audit disclosures are certified by a Chartered Accountant, a Unique Document Identification Number (UDIN) and Firm Registration Number (FRN) must be quoted.
6. Structure of the Form The form is divided into two main parts:
- Part A (Particulars of the Company): Captures basic details including the Name, Address, PAN, Date of Incorporation, Email ID, and Contact number.
- Part B (Particulars of the Skill Development Project): Captures details such as prior notifications/revocations, nature of business, commencement and expected completion dates, name and address of the training institute, return of income details for the past three Tax Years, outstanding tax demands or penalties, and previous/ongoing skill development projects.
7. Mandatory Documents (Annexures) Required The application must be accompanied by several supporting documents, including:
- A letter of concurrence from the training institute.
- A detailed project note describing the objectives, stages of implementation, expected results, and usefulness.
- Detailed projections of capital and revenue expenditure (excluding land or building costs).
- A copy of the company’s Memorandum and Articles of Association.
- Audited annual accounts for the last three Tax Years.
- Copies of any earlier notifications or revocation orders, if applicable.
8. Processing and Outcome
- Defect Rectification: If the application is incomplete or defective, the NCVET will intimate the applicant. The applicant has one month from the end of the month the intimation is served to rectify the defect, failing which the application may be treated as invalid.
- Notification: If approved, the Board will officially notify the skill development project (via Form 23).
- Validity: The notification is granted for a period not exceeding three Tax Years.
9. Revocation of Approval The approval granted can be revoked if the company or training institute ceases activities, if the project activities are found to be not genuine, if conditions of the approval are violated, or if statutory provisions under Rule 39 or 40 are not complied with.