Amendment of the Income-tax Rules under section 3 of the Income-tax Act, 1961
Notification No. 128 was published on 31 March 2004. Its subject is Amendment of the Income-tax Rules under section 3 of the Income-tax Act, 1961.
This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.
The Income-tax (Seventh Amendment) Rules, 2004 insert a new rule 16F after rule 16E, prescribing that the report of an accountant which the assessee must furnish along with the return of income under sub-section (5) of section 10BA shall be in Form No. 56H. In Appendix II, Form No. 56H is inserted after Form No. 56G. The form requires the accountant to certify the deduction claimed under sub-section (1) of section 10BA for the assessment year, determined on the basis of sale proceeds received in convertible foreign exchange, and to certify that he has collected and verified the relevant information. Annexure A to the form calls for the name of the undertaking, its location, nature of business, date of commencement of manufacture or production, number of workers employed, total turnover, total profits, total export turnover, export proceeds received in convertible foreign exchange in accordance with sub-section (3) of section 10BA, sale proceeds in respect of eligible articles or things, whether the full consideration was brought into India within six months from the end of the previous year or within such further period allowed by the Competent Authority, amounts credited to a separate account with a bank outside India with the Reserve Bank of India reference number, whether the main raw material has been imported, whether deduction under section 10A or section 10B was claimed in an earlier assessment year, and the amount of deduction with the working sheet.
Notification No : 128
Section(s) Referred : sub-section (5) of section 10BA
Date of Issue : 31/3/2004
Notification No. 128 of 2004, dt. 31st Mar., 2004
In exercise of the powers conferred by section 295 read with sub-section (5) of section 10BA of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: -
1. (1) These rules may be called the Income-tax (Seventh Amendment) Rules, 2004.
(2) They shall come into force on the date of theri publication in the Official Gazette.
2. In the Income-tax Rules, 1962,-
(a) after rule 16E, the following rule shall be inserted, namely: -
"Form of report for claiming deduction under section 10BA.
16F. The report of an accountant which is required to be furnished by the assessee along with the return of income, under sub-section (5) of section 10BA shall be in Form No. 56H."
(b) In Appendix-II, after Form No. 56G, the following Form shall be inserted, namely: -
"FORM NO. 56H (See Rule-16F)
Report under section 10BA of the Income-tax Act, 1961
1. I/We have examined the accounts and records of ----------------------------------------------------------------(name and address of the assessee with permanent account number) relating to the business of their undertaking named -------------------------ended on the 31st March ---------------------------.
2. I/We certify that the deduction to be claimed by the assessee under sub-section (1) of section 10BA of the Income-tax Act, 1961, in respect of the assessment year............. is Rs..................... which has been determined on the basis of the sale proceeds received by the assessee in convertible foreign exchange. The said amount has been worked out on the basis of the details in Annexure A to this form.
3. I/We certify that I/We have collected all the relevant information necessary for computing the deduction allowable under this section and have verified the same with reference to the accounts and records of the assessee.
4. In my/our opinion and to the best of my/our knowledge and according to the explanations given to me/us, the particulars given in the Annexure A are true and correct.
Dated............................
................................... Singned Accountant
ANNEXURE A (See paragraph 2 of Form 56H)
Details relating to the claim by the exporter for deduction under section 10BA of the Income-tax Act, 1961
1. Name of the assessee:
2. Assessment Year:
3. Name of the undertaking:
4. Location and address of the undertaking:
5. Nature of business of the undertaking:
6. Date of commencement of manufacture or production:
7. Number of workers employed by the undertaking:
8. Total turnover of the undertaking:
9. Total profits of the undertaking:
10. Total export turnover of the undertaking:
11. Export proceeds received in convertible foreign exchange in accordance with sub-section 3 of section 10BA, of the undertaking in respect o feligible articles or things:
12. Sale proceeds of the undertaking in respect of eligible articles or things:
13. Please specify
(i) Whether the full considerationin convertible foreign exchange for exports made by the undertaking was brought into India within a period of six months from the end of the previous year
Yes....... No............
(ii) If not, whether it was brought into India within such further period in the previous year as allowed by the Competent Authority
Yea............... No................
(iii) Specify the amount and the relevant previous year in case such amount is brought into India in convertible foreign excahnge beyond the period of six months fromt he end of relevant previous year and with the approval of the Competent Authority, where such amount relates to any other previous year. also state the name of the authority and the period up to which the approval was accorded.................
(iv) Amount of sale proceeds. If any, that are credited to a separate account Maintained by the Assessee with any bank outside India and the reference number of Reserve Bank of India according permission for the same...................
(v) Whetehr the main raw material hs been imported
Yes............. No.....................
14. Please specify whether the assessee has claimed deduction under section 10A or section 10B of the Income-tax Act in the assessment year prior to the assessment year for which the audit report is furnished
Yes.................... No
If yes, please specify the assessment year for which the deduction under section 10A or section 10B of the Income-tax Act has been claimed......................
15. Amount of deduction under section 10BA to which assessee is entitled with the working sheet....................
16. Remarks, if any.............................."
F.No. 142/8/2004-TPL
| Rule of the 1962 Rules | Now, in the 2026 Rules |
|---|---|
| Rule 16F | no counterpart recorded |
Forms it touches. Form No. 56H
the date of publication in the Official Gazette.
A reader meets this in the return of an exporter claiming deduction under section 10BA, where Form No. 56H with Annexure A is filed with it.
Forms it names. Form No. 56G, Form No. 56H
Rules it names. Rule 16E of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.
Source: the Income Tax Department’s own published text — its page for this instrument.