New Income Tax Forms Released by Department: Form 1, Form 10IEA, Form 10IFA and Form 3AF

New Income Tax Forms: Form 1, Form 10IEA, Form 10IFA and Form 3AF

New IT Forms Released: According to a recent update on 5 April 2024 by the Income Tax Department, Form 1, Form 10-IEA, Form 10IFA and Form 3AF has been released by the department.

Please refer Notification 65/2022 for Form 1 (Aircraft Leasing Business), Notification 52/2023 for Form 1 {Dividend exempt u/s 10(34B)}, Notification 57/2023 for Form 1 (Ship Leasing Business), Notification 43/2023 for Form 10-IEA, Notification 83/2023 for Form 10-IFA & Notification 54/2023 for Form 3AF to know about the purpose of introducing these forms and their use. For easy access of the notifications about new forms by our readers, we have given the link of every notification towards the end of this article.

In this article we have taken an initiative to give a brief idea about the use of these forms for an easy understanding of our readers.

So let us delve into our discussion about the use of these forms according the respective notifications of the central board of direct taxes (CBDT) between June 2022 to September 2023.

1. Form 1: Leasing of aircraft by IFSC Units

According to the Notification 65/2022 Dated 16 June 2022, no deduction of tax shall be made under section 194-I of the Income-tax Act on payment of lease rent, made by a person (Lessee) to a Lessor being a Unit located in International Financial Services Centre (IFSC), for lease of an aircraft.

To avail the above benefit, the lessor has to furnish a statement-cum-declaration in Form No. 1 to the lessee giving details of previous years relevant to the ten consecutive assessment years for which the lessor opts for claiming deduction under subsection (1A) read with section (2) of the section 80LA of the Income-tax Act.

2. Form 1: Dividend exempt u/s 10(34B)

According to the Notification 52/2023 Dated 20 July 2023, no deduction of income tax shall be made under section 194 of the Income-tax Act from any income in the nature of dividend paid by any unit of an International Financial Services Centre, primarily engaged in the business of leasing of an aircraft (payer) to a company, being a Unit of an International Financial Services Centre primarily engaged in the business of leasing of an aircraft (payee).

To avail this benefit, the payee shall furnish a statement-cum-declaration in Form No. 1 to the payer giving details of previous year relevant to the assessment year in which the dividend income eligible for exemption under Section 10 (34B) of Income-tax Act is payable.

3. Form 1: Ship Leasing Business

According to Notification 57/2023 Dated 1 August 2023, no deduction of tax shall be made under section 194-I of the Income-tax Act on payment in the nature of lease rent, made by a person (lessee) to a person being a Unit of an International Financial Services Centre (lessor) for lease of a ship.

To avail this benefit, the lessor shall furnish a statement-cum-declaration in Form No.1 to the lessee giving details of previous years relevant to the ten consecutive assessment years for which the lessor opts for claiming deduction under sub-sections (1A) and (2) of section 80LA of the Income-tax Act.

4. Form 10-IEA: Exercise of option under Section 115-BAC (6)

According to Notification 43/2023 Dated 21 June 2023, the option to be exercised in accordance with the provisions of sub-section (6) of section 115-BAC by a person, being an individual or Hindu undivided family, or an association of persons (other than a co-operative society) or a body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024, shall be in Forms 10-IEA on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for such assessment year.

5. Form 10 IFA: Exercise of option under Section 115-BAE (5)

According to Notification 83/2023 Dated 29 September 2023, the option to be exercised in accordance with the provisions of sub-section (5) of section 115-BAE by a person, being a co-operative society resident in India, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024, shall be in Forms 10-IFA.

6. Form 3AF: Preliminary expenses incurred under section 35D

According to Notification 54/2023 dated 1 August 2023, the statement containing particulars of expenditure required to be furnished under proviso to clause (a) of subsection (2) of section 35D by the assessee shall be in Forms 3AF for each previous year.

Form No. 3AF shall be furnished one month prior to the due date for furnishing the return of income as specified under sub-section (1) of section 139. (3) It shall be furnished to the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, or any person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).

To Access the Notifications pertaining introduction of these new forms, Please click on the below given links.

Notification 65/2022: Form 1 for Leasing of aircraft by IFSC Units

Notification 52/2023: Form 1 for Dividend exempt u/s 10(34B)

Notification 57/2023: Form 1 for Ship Leasing Business

Notification 43/2023: Form 10-IEA for Exercise of option under Section 115BAC (6)

Notification 83/2023: Form 10 IFA: Exercise of option under Section 115BAE (5)

Notification 54/2023: Form 3AF for Preliminary expenses incurred under section 35D

Also Read: Commonly used Income Tax Return Functionalities enabled by CBDT on 1st April, 2024

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