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.