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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 1st August, 2023
INCOME-TAX
G.S.R. 579(E).––In exercise of the powers conferred by proviso to clause (a) of sub-section (2) and
sub-section (4) of section 35D read with section 295 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.
Short title and commencement.––(1) These rules may be called the Income-tax (Fourteenth Amendment)
Rules, 2023.
(2) They shall come into force with effect from the 1st day of April, 2024.
2.
In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 6ABBA, the following
rule shall be inserted, namely:––
“6ABBB. Form of statement to be furnished regarding preliminary expenses incurred under section 35D.–
(1) The statement containing particulars of expenditure required to be furnished under proviso to clause (a) of sub-
section (2) of section 35D by the assessee shall be in Form No. 3AF for each previous year.
(2) 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) Form No. 3AF 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).
(4) Form No. 3AF, shall be furnished electronically,—
(i) under digital signature, if the return of income is required to be furnished under digital signature;
(ii) through electronic verification code in a case not covered under clause (i).
(5) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as the
case may be, shall specify the procedures for furnishing Form No. 3AF and shall also be responsible for formulating
and evolving appropriate security, archival and retrieval policies in relation to the form so furnished.
(6) The Principal Director General of Income-tax (Systems) or 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) shall forward Form No. 3AF to the Assessing Officer.”.
3.
In the principal rules, in Appendix II, for Form No. 3AE, the following Forms shall be substituted, namely:–
“FORM NO. 3AE
[See rule 6AB]
(e-Form)
Audit Report under section * 35D(4)/35E(6) of the Income-tax Act, 1961
*
I/We
have
examined
the
Balance
Sheet(s)
of
M/s
__________________________
as
at
___________________________________ and the Profit and Loss Account(s) for the year(s) ended on
____________________* that/those date(s) which are in agreement with the books of account maintained at the
head office at ______________________________* and branches at _________.
* I/We have obtained all the information and explanations which to the best of * my/our knowledge and belief were
necessary for the purposes of the audit. In * my/our opinion, proper books of account have been kept by the head
office and the branches of the above named assessee visited by * me/us so far as appears from * my/our examination
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
of the books, and proper returns adequate for the purposes of audit have been received from branches not visited by *
me/us, subject to the comments given below :-
_______________________________________________________________________________________________
_____________________________________________________________________________________
In * my/our opinion and to the best of * my/our information and according to explanations given to * me/us, the said
accounts give a true and fair view:-
(i) in the case of the Balance Sheet(s) of the state of the abovenamed assessee's affairs as at
____________________; and
(ii) in the case of the Profit and Loss Account(s), of the profit or loss of his accounting year(s) ending on
____________________.
The statement of particulars required for the purposes of the deduction under section * 35D/35E is annexed and in
*my/our opinion and to the best of * my/our information and according to explanations given to * me/us, these are
true and correct.
Place…………………
Signed: …………………………………………….
Date………………….
Accountant†
Name: ………………………………………………
Address: …………………………………………..
Membership No: ………………………………
Notes :
1. *Delete whichever is not applicable.
2. †This report is to be given by an accountant as defined in the Explanation below sub-section (2) of section
288 of the Income-tax Act,1961.
3. Where any of the matters stated in this Report is answered in the negative or with a qualification, the Report
shall state the reasons for the same.
ANNEXURE TO FORM NO. 3AE
SECTION A
STATEMENT OF PARTICULARS REQUIRED FOR THE PURPOSES OF DEDUCTION UNDER SECTION 35D
1.
Date of commencement of business
……………………
2.
Where the deduction is claimed with reference to the expenditure incurred in
connection with the extension of the industrial undertaking or the setting up of
a new industrial unit, the date on which the extension was completed or new
industrial unit commenced production or operation
…………………….
*3.
Qualifying amount of expenditure :
† (a) Expenditure in connection with-
(i) preparation of feasibility report
(ii) preparation of project report
(iii) conducting market survey or any other survey necessary
for the business of the assessee
(iv) engineering services relating to the business of the
assessee
Rs……
Rs……
Rs……
Rs……
(b) Legal charges for drafting any agreement between the
assessee and any other person for any purpose relating to the
setting up or conduct of the business of the assessee
Rs……..
TOTAL
Rs……..
Whether Form No. 3AF has been filed as per the provisions of
rule 6ABBB?
Yes/No
‡4.
Cost of the project, i.e., actual cost of:
(i) land and buildings (including expenditure on development)
(ii) leaseholds
(iii) plant and machinery
(iv) furniture and fittings
(v) railway sidings
Rs………
Rs………
Rs………
Rs………
[भागII—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
9
Rs………
TOTAL
Rs………
5.
Deduction claimed under section 35D
Rs………
Place…………..
Date……………
Signed : ……………………………...
Accountant
Name: ………………………………..
Address: ……………………………..
Membership No: …………………….
SECTION B
STATEMENT OF PARTICULARS REQUIRED FOR THE PURPOSES OF DEDUCTION UNDER SECTION 35E
1.
Name(s) of mineral(s) or group(s) of associated minerals in
respect of which operation relating to prospecting or development
were undertaken
…………………………………
2.
Year of commercial production
…………………………………
3.
Qualifying amount of expenditure:
Year in which expenditure was incurred
Amount of expenditure (Give details) Rs.
1.
2.
3.
4.
5.
……..
Place…………..
Date……………
Signed : ……………………………...
Accountant
Name: ………………………………..
Address: ……………………………..
Membership No: …………………….
*Where the qualifying expenditure was incurred during more than one year, year-wise details of the expenditure
should be given.
†Expenditure prior to 1.4.2023 under this head should be claimed only where the work in connection with the
preparation of the feasibility report or project report or conducting market survey or any other survey or engineering
services has been carried out by the assessee himself or by a concern which has been approved in this behalf by the
Board. Expenditure after 1.4.2023 under this head requires Form No. 3AF also to be furnished.
‡ In a case where the claim relates to preliminary expenses incurred before the commencement of business, the actual
cost of the specified assets which are shown in the books of the assessee as on the last day of the previous year in
which the business was commenced should be given. In a case where the expenses were incurred in connection with
the extension of the industrial undertaking or the setting up of a new industrial unit, the actual cost of the specified
assets which are shown in the books of account as on the last day of the previous year in which the extension of the
industrial undertaking was completed or the new industrial unit commenced production or operation (in so far as such
assets have been acquired or developed in connection with the extension of the industrial undertaking or the setting up
of the new industrial unit) should be given.
FORM NO. 3AF
[See rule 6ABBB]
(E-form)
Statement regarding preliminary expenses incurred to be furnished under proviso to clause (a) of sub-section
(2) of section 35D of the Income-tax Act, 1961 by the assessee
Name of the Assessee
Name
Status
Residential status
Permanent Account Number
Aadhaar number (if applicable)
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
Tax Deduction and Collection
Account Number (if applicable)
Address
Relevant previous year for which the statement is
being filed
Expenditure
in connection
with:*
Details of expenditure incurred
Nature of
activity
(See Note 1)
Whether
carried
out by
assessee
itself
(Y/N)
Name and
address of
person (s)
carrying out the
activity (See
Note 2)
PAN of
the
person(s)
Whether the
person (other
than assessee
itself), has prior
experience in
carrying out the
activity (Y/N)
Amount of expenditure
(in Rs.)
If tax deducted at
source, then
provide:
Paid in
Cash
Paid
other
than in
cash
Total Amount
of tax
deducted
(in Rs.)
Section
under
which
tax is
deducted
a. Preparation
of feasibility
report
…
b. Preparation
of project
report
…
c. Conducting
market
survey or any
other survey
necessary for
business of
the assessee
…
d. Engineering
services
relating to the
business of
the assessee
…
*Drop down to be provided
Verification
I ………………., do hereby declare that what is stated above is true to the best of my knowledge and belief.
Verified today, the ______________ day of ______________.
Place
Date
Signature of the Authorised Signatory
[भागII—खण् ड 3(i)]
भारत का रािपत्र : असाधारण
11
Note:
1. In case there is more than one person carrying out the activity, separate details to be filled.
2. If carried out by the assessee itself, write “SELF”.”.
[Notification No. 54/2023/ F. No. 370142/24/2023-TPL]
JIVITESH ANAND, Under Secy. (Tax Policy and Legislation Division)
Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii)
vide notification number S.O. 969 (E), dated the 26th March, 1962 and was last amended vide notification
number G.S.R. 519 (E), dated 18.7.2023.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
