CBDT Amends Form 10CCF For IFSC Insurance Units Under Sec. 80LA

Notification No. 135/2025, dated 20-08-2025

1. Amendment to Form 10CCF by CBDT

The Central Board of Direct Taxes (CBDT) has notified an amendment to Form 10CCF, which is required to be furnished by Units located in an International Financial Services Centre (IFSC) for claiming deductions under section 80LA of the Income-tax Act. This amendment aims to bring greater clarity in reporting and compliance for IFSC Units.

2. Applicability to IFSC Insurance Offices

The revised provisions specifically cover IFSC Insurance Offices undertaking insurance business. Such entities, while furnishing Form 10CCF, are now required to compute and report their “gross income” and “gross eligible income” in accordance with prescribed norms. This ensures uniformity and prevents any ambiguity in the calculation of income eligible for deduction.

3. Reference to Section 44 and First Schedule

The amendment stipulates that the computation of income by IFSC Insurance Offices must be carried out in line with section 44 of the Income-tax Act, read with the First Schedule. These provisions lay down specific rules for determining profits and gains of insurance businesses, thereby ensuring that the methodology for arriving at income remains consistent with statutory requirements.

4. Ensuring Accurate Claim of Section 80LA Benefit

By aligning the computation of “gross income” and “gross eligible income” with established provisions, the CBDT seeks to safeguard the integrity of deductions claimed under section 80LA. This move will not only streamline compliance for IFSC Insurance Units but also enhance transparency in the reporting process, ultimately benefiting both taxpayers and the revenue authorities.

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