FORM 21— Frequently Asked Questions (FAQs)

Notification format for Agricultural Extension Project under Section 47(1)(a) of the Income-tax Act, 2025

Name of Form as per I.T. Rules, 1962	3CP	Name of Form as per I.T. Rules, 2026	21
Corresponding section of I.T. Act, 1961	35CCC	Corresponding section of I.T. Act, 2025	47(1)(a)
Corresponding Rule of I.T. Rules, 1962	6AAD	Corresponding Rule of I.T. Rules, 2026	37

1. What is Form 21?

Ans: Form 21 is an Income-tax notification form issued for an approved agricultural extension project under Section 47(1)(a) of the Income-tax Act, 2025, pursuant to approval granted under Rule 37.

2. What is the purpose of Form 21?

Ans: The primary purpose of Form 21 is to:

• Notify an approved agricultural extension project in the Official Gazette.
• Specify the Tax Year(s) for which the project is approved.
• Lay down the terms, conditions, duration, and expenditure limits applicable to the project.
• Enable tax benefits linked to approved agricultural extension projects under Section 47(1)(a).

3. Who issues Form 21?

Ans: Form 21 is issued by the Central Board of Direct Taxes (CBDT) after satisfaction that the project meets conditions prescribed under Rule 37.

4. When is Form 21 issued?

Ans: Form 21 is issued after Form 20 is examined and approved, and the project qualifies for notification under Section 47(1)(a) of the Income-tax Act, 2025.

5. What details are contained in Form 21?

Ans: Form 21 contains:

• Name, address, and PAN of the applicant.
• Reference number and date of application.
• Title and purpose of the agricultural extension project.
• Date of commencement and duration of the project.
• Approved Tax Year(s).
• Estimated total project expenditure (excluding land/building).
• Charges, if any, proposed to be collected from beneficiaries.
• Specific conditions imposed on the project.

6. Which agricultural extension projects are eligible to be notified under Form 21?

Ans: A project is eligible if:

• It is undertaken for training, education, and guidance of farmers.
• It has prior approval from the Ministry of Agriculture and Farmers Welfare.
• Expected expenditure (excluding land/building) exceeds ₹25 lakh.
• It complies with Rule 37 of the Income-tax Rules, 2025.

7. For how long is an agricultural extension project notified under Form 21?

Ans: The project may be notified for a period not exceeding three Tax Years, as specified in the notification.

8. Can the notification under Form 21 be extended?

Ans: Yes. The assessee may apply for renewal or extension of notification at least three months before expiry of the existing approval period.

9. What happens after Form 21 is issued?

Ans: After issuance:

• The notification is published in the Official Gazette.
• Copies are sent to:
• The applicant
• Ministry of Agriculture and Farmers Welfare
• Jurisdictional Commissioner of Income-tax
• State Department of Agriculture
• Agricultural Technology Management Agency (ATMA)

10. Can Form 21 be revised or withdrawn?

Ans: No. Once Form 21 is issued and published, it cannot be revised or withdrawn, except through revocation proceedings under Rule 37.

11. Under what circumstances can a Form 21 notification be revoked?

Ans: Notification may be revoked if:

• The assessee ceases project activities.
• Project activities are not genuine.
• Conditions of approval are violated.
• Provisions of Rule 37 or Rule 38 are not complied with.

12. Is any compliance required after Form 21 is issued?

Ans: Yes. The assessee must:

• Follow all conditions mentioned in Form 21.
• Ensure project funds are used only for approved purposes.
• Maintain records for monitoring and reporting.

13. Is any information in Form 21 auto-filled?

Ans: Yes. Some information may be auto-populated based on Form 20 and departmental records.

14. How is Form 21 authenticated and verified?

Ans: Form 21 is authenticated through:

• Authorized CBDT officer’s signature.
• Official notification in the Gazette of India.

15. When are UDIN and FRN applicable in relation to Form 21?

Ans:

• UDIN (Unique Document Identification Number): Where Chartered Accountant certification supports expenditure or audit reporting, UDIN must be generated and quoted.
• FRN (Firm Registration Number): If certification is issued by an audit firm, the Firm Registration Number (FRN) must be disclosed.
• DSC (Digital Signature Certificate): A valid DSC is required for electronic submission of related filings.

16. What are common reasons for rejection or cancellation of Form 21 notification?

Ans:

• Incomplete or misleading project information.
• Failure to meet expenditure thresholds.
• Non-compliance with Ministry approval conditions.
• Violation of notification conditions.

17. What is the objective of Form 21 under the Income-tax Act, 2025?

Ans: Form 21 ensures:

• Formal Government notification of approved agricultural extension projects.
• Transparent disclosure of project scope, duration, and financial limits.
• Effective monitoring and accountability.
• Standardized implementation of Section 47(1)(a) under the Income-tax Act, 2025.

Agricultural extension project notification under income-tax rules sets approval conditions, duration limits, and compliance requirements for tax benefits. Form 21 is the prescribed income-tax notification form for an approved agricultural extension project under Section 47(1)(a) of the Income-tax Act, 2025, issued after approval under Rule 37 and published in the Official Gazette. It notifies the project, specifies the approved tax year(s), and sets out the terms, conditions, duration, expenditure limits, and beneficiary charges. The form records the applicant's particulars, project purpose, commencement date, approved period, estimated expenditure, and other conditions attached to approval.