Form 35: Report for deduction concerning Offshore Banking Units and IFSC units under section 147(4)(a)
Source checked 21 October 2026 · Original author: Finin2min Editorial Desk
Purpose, person and period
Report for deduction concerning Offshore Banking Units and IFSC units under section 147(4)(a).
The accountant reports the offshore-banking or IFSC unit’s eligible income under Rule 69, with a separate exclusion for income not received in convertible foreign exchange.
Period gate: This numbered form belongs to the Income-tax Rules, 2026, effective 1 April 2026. The predecessor 10CCF is a concordance, not permission to change an earlier-year filing into a new-law form. For earlier periods, use the applicable 1961 Act form and saved procedure.
Controlling rule and source pages
Rule 69; Section 147(4), Section 515(3). Physical PDF pp 398-399; printed Gazette pp 1930-1931.
Rule 69 — connected rule text
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
Completed field illustration
Fictional data, not for filing. A fictional IFSC unit separates gross income not received in convertible foreign exchange from the eligible-income computation.
| Form field / block | Completed fictional entry |
|---|---|
| Assessee / PAN / tax year | Example Financial Services Ltd / synthetic ZZZCE0000Z / 2026-27 |
| Row 3: nature / name / location | IFSC unit / Model IFSC Unit / GIFT IFSC, Gujarat |
| Permission / commencement fields | MODEL-PERMISSION-035 / 1 April 2020; no actual regulatory permission is represented |
| First tax year of deduction claim | 2020-21, assumed |
| Row 5: gross income | Rs 10,00,000 |
| Row 6: income not received in convertible FX | Rs 1,00,000 |
| Row 7: gross eligible income | Rs 9,00,000 |
| Row 8: attributable expenses | Rs 3,00,000 |
| Row 9: eligible income | Rs 6,00,000 |
| Accountant verification | Model only; NOT SIGNED |
This illustrates the named fields, not every possible schedule. Use the complete official extract for additional applicable fields, annexures and verification. “Not signed” means no professional certification or authority action has occurred.
Reconcile the example
- 10,00,000 − 1,00,000 = 9,00,000.
- 9,00,000 − 3,00,000 = 6,00,000.
This is not an IFSC insurance-office example. The allowable deduction still depends on the unit’s statutory conditions, relevant claim period and rate, separately from the row 9 arithmetic.
Prepare, furnish and retain
- Use the form identity and period above, then determine the person who prepares, issues or verifies it from Rule 69. An authority-issued order is not an applicant filing.
- Collect the records that support the actual fields in the example; keep any mandatory schedules and annexures specified in the complete source form.
- Reconcile dates, amounts, units and identifiers to the underlying records. Preserve the applicable rule version and any later correcting notification.
- Where the rule prescribes electronic furnishing, use the current official utility/schema and authorised verification. A local PDF does not produce a portal acknowledgement.
- Retain the submitted version, supporting schedules and actual acknowledgement or issued certificate/order, as applicable. This fictional model supplies none of those evidential outcomes.
Download the correct documents
Official Form 35 source extract Filled sample — fictional field illustration
The official extract preserves source pages; later amendments are supplied with affected forms. Read the April corrigendum where its printed-page corrections apply. The filled field illustration is an educational model and cannot be filed.
Primary sources
Questions readers ask
Does this sample prove approval, filing or a professional conclusion?
No. It completes the named fields using synthetic facts. It has no real signature, DSC, approval or acknowledgement.
Can I use the legacy form number for a current tax-year obligation?
Establish the governing period first. A predecessor number is a cross-reference; earlier-year procedures and current-year forms must be kept distinct.