TaxTMI 
TaxTMI 
TaxTMI 
FORM 21— Frequently Asked Questions (FAQs)
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....ORM 21— Frequently Asked Questions (FAQs)<BR>Income Tax<BR>Dated:- 25-3-2026<BR><BR>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 ....
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....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? ....
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.... 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....
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.... 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. Wha....
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....t 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 ....
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....(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 approv....
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....al from the Ministry of Agriculture and Farmers Welfare. • Expected expenditure (excluding land/building) exceeds Rs.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 notificati....
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....on. 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 appl....
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....icant • 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 ....
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....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 ....
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....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 F....
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....orm 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 repor....
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....ting, 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? An....
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....s: • 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 agricult....
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....ural 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. =============<BR> News - Press release - PIB....