Form 35 – FAQs

Form of report of accountant to be furnished under section 147(4)(a)

Name of form as per I.T. Rules, 1962	Form 10CCF	Name of form as per I.T. Rules, 2026	35
Corresponding section of I.T. Act, 1961	80LA(3)	Corresponding section of I.T. Act, 2025	147(4)(a)
Corresponding Rule of I.T. Rules, 1962	19AE	Corresponding Rule of I.T. Rules, 2026	69

Purpose :

Form 35 is required to be filed along with the Return of Income by assessees availing deduction u/s 147 on income from Offshore Banking Units located in in SEZs or from unit of an International Financial Services Centre. Form 35 is to be filed under Rule 69 of the Income tax Rules. The form should be verified by a chartered accountant.

Who should file:

An assessee being a scheduled or foreign bank and having an Offshore Banking Unit in a Special Economic Zone, or a Unit of an International Financial Services Centre availing deduction on its income should file this form.

Due Date:

Form 35 is required to be filed along with the Return of Income. Hence, the due date for filing return of income for the said assessee will be the due date to file this form.

Structure of Form 35:

- Basic details – Name, PAN, Tax Year

- Details of the unit claiming deduction– Name, address, Copy of permission obtained

- Details of the deduction – First year of deduction claim, gross income, income not received in convertible foreign exchange, expenses and net income

What are the documents/information required to file Form 35?

The following documents/information are required to file form 35:

1. Details of the unit claiming deduction
2. Copy of the permission(s) obtained under section 23(1)(a) of the Banking Regulation Act, 1949 or the International Financial Services Centres Authority Act, 2019 (50 of 2019).
3. Details of previous claims of deduction
4. Income (net of income not received in convertible foreign exchange) and expenses of the unit for the tax year of deduction claim

What is the process flow of filing Form 35?

The process flow includes the following steps:

1. Enter details of the unit claiming deduction.
2. Upload the copy of the permission(s) obtained under section 23(1)(a) of the Banking Regulation Act, 1949 or the International Financial Services Centres Authority Act, 2019 (50 of 2019).
3. Enter income, expense and deduction details.
4. Enter verification details
5. E-verify the Form 35 using DSC of chartered accountant

Outcome of processed Form 35:

The deduction on income from Offshore Banking Units is allowed based on details filed in Form 35.

Common changes made across forms:

1. Pre-filling of basic details such as Name, PAN and Tax Year etc. with option for the assessee to edit the same.
2. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.
3. Sections, Clauses and Schedules changed as per the Income-tax Act, 2025.
4. Currency symbol “Rs.” has been replaced with “₹”.

Deduction claims for offshore banking units require Form 35, accountant verification, and filing with the return of income. Form 35 is the accountant's report to be filed with the return of income by assessees claiming deduction on income from Offshore Banking Units in Special Economic Zones or units of an International Financial Services Centre. It must be verified by a chartered accountant and filed by the return due date. The form captures unit particulars, permissions, income, expenses, net income and previous claims, and requires e-verification with the chartered accountant's digital signature certificate.