Rule 69: Form 35 offshore banking and IFSC report
Rule 69 prescribes Form No. 35 for the accountant’s report under section 147(4)(a). The report supports the qualifying offshore-banking-unit or IFSC-unit deduction governed by the parent section.
Official notified Income-tax Rules, 2026Need advice on Rule 69?
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Bare law
Rule 69 - Report of accountant to be furnished under section 147(4)(a)
The report of the accountant, as defined in section 515(3)(b), which is required to be furnished by the assessee under section 147(4)(a), shall be in Form No. 35
Rule breakdown
Identify the qualifying unit and income
Section 147 sets the eligible unit, income, period and other deduction conditions. Identify the actual unit and income stream before preparing the report.
The existence of an IFSC address alone should not be treated as proof that all income qualifies.
Use Form 35 from the defined accountant
The prescribed report is Form No. 35 from an accountant within section 515(3)(b)’s definition. Reconcile the certified claim with the unit accounts and computation.
Keep records showing how qualifying and other income were distinguished.
Coordinate the parent-section attachments
Section 147(4) requires the report certifying the claim along with the return and the applicable permission or registration copy identified by that section. Rule 69 specifies the report form, not a replacement for those supporting documents.
Confirm the current filing procedure and keep the report, permission or registration and acknowledgment together.
Review the deduction period separately
The eligible period and extent of the deduction arise under the current parent Act. Record the unit’s relevant commencement, permission and claim history.
Do not assume that using Form 35 creates a fresh deduction period or resolves all current section 147 conditions.
Key takeaways
Form 35
The prescribed section 147(4)(a) report.
Unit and income eligibility
The parent section controls the claim.
Supporting permissions
The report does not replace required permission or registration evidence.
Practical checklist
- Reconcile qualifying income to the unit accounts.
- Obtain Form 35 and applicable permission or registration records.
- Check the current statutory period and filing conditions.
Avoid
- Do not treat every IFSC-related receipt as qualifying automatically.
- Do not treat the report as a substitute for eligibility evidence.
FAQs
Which report form applies?
Form No. 35.
Does the form replace the section 147 permission or registration copy?
No. The parent section’s separate documentation conditions must also be satisfied.
Does filing the form start a new deduction period?
No. The applicable period is determined under the parent Act and the unit’s facts.
Glossary
- Form 35
- The accountant’s report prescribed by Rule 69.
- Qualifying unit
- An offshore banking or IFSC unit satisfying the applicable section 147 conditions.