Form 3CEB Explained: Download & Report Under Section 92E for International and Specified Domestic Transactions

Form 3CEB Explained: Report Under Section 92E for International and Specified Domestic Transactions

Form 3CEB is a crucial reporting document under Section 92E of the Income-tax Act, 1961. It is required to be furnished by every person who has entered into international transactions or specified domestic transactions with associated enterprises during the financial year. The form must be certified by a Chartered Accountant and is a part of the transfer pricing documentation and compliance requirements in India.

The objective behind this reporting requirement is to ensure that transactions between related parties are conducted at arm’s length prices and to prevent tax base erosion through the manipulation of prices in cross-border and high-value domestic dealings.

What is Form 3CEB?

Form 3CEB is a detailed report prepared and certified by a Chartered Accountant, which includes disclosure and verification of international transactions and specified domestic transactions undertaken by a taxpayer. It contains the nature of such transactions, the method used for determining the arm’s length price, and other relevant information to validate compliance with transfer pricing regulations.

Who Should File Form 3CEB?

Form 3CEB must be filed by every person (individuals, firms, LLPs, companies, etc.) who has entered into:

• One or more international transactions with associated enterprises (foreign or domestic)
• Specified domestic transactions as defined under Section 92BA of the Income-tax Act, exceeding the prescribed threshold

The form is mandatory irrespective of the value of international transactions. For specified domestic transactions, the threshold limit is ₹20 crore.

Key Definitions

• International Transaction: A transaction between two or more associated enterprises located in different countries involving transfer of goods, services, intangibles, finance, or cost-sharing arrangements.
• Specified Domestic Transaction: Certain high-value domestic transactions, such as those covered under Section 80-IA, 80-IB, or with related parties, which are subject to transfer pricing provisions.
  

Why is Form 3CEB Important?

Form 3CEB ensures transparency and consistency in cross-border and high-value domestic transactions. It helps in validating that pricing is at arm’s length and taxes are not avoided through artificial inflation or deflation of profits. It is an essential part of a taxpayer’s transfer pricing audit and is scrutinized during assessments by the tax department.

Download Form 3CEB Utility

To facilitate electronic filing, the Income Tax Department provides a utility for Form 3CEB. It is available in a downloadable ZIP format and can be used to prepare and generate the required XML file.

🔗 Form Utility (1.21 MB): Download Utility ZIP

📅 Date of First Release: 04-Oct-2022

📅 Date of Latest Release: 01-Apr-2025

Download Form 3CEB Schema

The schema is a technical document used by developers and taxpayers to validate Form 3CEB before submission. It is mandatory to use the latest schema version to avoid errors during upload.

🔗 Form Schema (21.8 KB): Download Schema ZIP

📅 Date of First Release: 02-Sep-2022

📅 Date of Latest Release: 28-Mar-2025

Schema Change Document

This document records all changes made in the schema versions over time, such as changes in tag names, validation rules, and form fields.

🔗 Schema Change Document (179 KB): Download Schema Change PDF

📄 Version: 1.3

Details Required in Form 3CEB

The form contains the following sections:

1. Part A: Basic details of the taxpayer and accountant
2. Part B: Details of international transactions, including method used for transfer pricing and values
3. Part C: Details of specified domestic transactions, with similar reporting requirements

Each transaction must be described, justified, and supported with documentation as per transfer pricing norms.

When to File Form 3CEB?

Form 3CEB must be filed electronically before the due date of filing the income tax return under Section 139(1). For audit cases, this is typically:

• 31st October following the financial year

It is important to file the form on time to avoid penalties and disallowances.

Penalty for Non-Filing

• ₹1,00,000 under Section 271BA for failure to furnish Form 3CEB
• Further penalties and interest may apply in case of transfer pricing adjustments

Best Practices for Form 3CEB Filing

• Ensure accurate documentation for all transactions with associated enterprises
• Use correct method (CUP, TNMM, Cost Plus, etc.) for transfer pricing
• Coordinate with a qualified Chartered Accountant for timely certification
• Keep supporting documents ready for audit and scrutiny
• Use latest utility and schema while preparing and uploading the form

Conclusion

Form 3CEB is a critical compliance requirement under India’s transfer pricing regulations. It ensures transparency in related-party transactions and prevents tax evasion through inflated or deflated transaction values. Every eligible taxpayer must ensure timely and accurate filing of this report to avoid legal consequences and ensure smooth assessments.

Given the complexity and regulatory scrutiny involved in international and specified domestic transactions, professional assistance and use of updated utilities and schema are strongly recommended for proper compliance with Section 92E and associated provisions.

Form 29C Explained: Download & Report Under Section 115JC for Alternate Minimum Tax (AMT) Compliance

Form 29C Explained: Report Under Section 115JC for Alternate Minimum Tax (AMT) Compliance

Form 29C is a statutory report under Section 115JC of the Income-tax Act, 1961. It is used to compute the Adjusted Total Income and determine the Alternate Minimum Tax (AMT) liability of taxpayers other than companies—such as individuals, Hindu Undivided Families (HUFs), Association of Persons (AOPs), and partnership firms—who claim certain deductions and whose regular income tax liability is lower than the minimum alternate tax.

This form is especially important for taxpayers claiming deductions under sections like 10AA (SEZ), 35AD (capital expenditure on specified businesses), and Chapter VI-A under heading C (Sections 80-IA to 80RRB). It ensures that even these taxpayers pay a minimum amount of tax to the government.

What is Form 29C?

Form 29C is a report certified by a Chartered Accountant, required to be filed by taxpayers falling under the purview of Alternate Minimum Tax provisions. The form contains the computation of Adjusted Total Income and the AMT liability. It also includes details of deductions claimed by the taxpayer and adjustments made to arrive at the final tax payable under Section 115JC.

Who Should File Form 29C?

Form 29C must be filed by any person other than a company (e.g., individuals, HUFs, AOPs, BOIs, partnerships) if they:

• Claim deductions under Section 10AA, 35AD, or Chapter VI-A under heading C (e.g., 80-IA, 80-IB, 80-IC, etc.)
• Have total income adjusted for AMT purposes exceeding ₹20 lakhs
• Are liable to pay AMT as per provisions of Section 115JC

Why is Form 29C Important?

The purpose of Form 29C is to ensure that taxpayers who claim substantial deductions still contribute a minimum amount of tax. It promotes tax fairness and discourages excessive tax avoidance through deductions. The report also acts as a declaration and validation of the taxpayer’s income and deduction claims, verified by a Chartered Accountant.

Understanding Alternate Minimum Tax (AMT)

Alternate Minimum Tax is similar to MAT for companies but applies to non-corporate taxpayers. It was introduced to ensure minimum tax payment by high-income individuals and entities claiming tax benefits. Under Section 115JC, AMT is calculated at 18.5% (plus surcharge and cess) on the Adjusted Total Income.

If the AMT is higher than the regular tax payable, then AMT becomes the tax liability. Taxpayers can also carry forward AMT credit for up to 15 years.

How to Compute Adjusted Total Income?

Adjusted Total Income is computed as follows:

1. Start with total income as per the Income-tax Act
2. Add back deductions claimed under:
   • Section 10AA
   • Section 35AD (minus depreciation)
   • Chapter VI-A under "C" (80-IA to 80RRB, excluding 80P)

If the resulting Adjusted Total Income exceeds ₹20 lakh, and AMT is higher than regular income tax, the taxpayer must pay AMT and file Form 29C.

Download Form 29C Schema

The Income Tax Department provides a downloadable schema for Form 29C. This is used for generating validated XML files for online submission.

🔗 Form Schema (14.3 KB): Download Form Schema ZIP

📅 Date of First Release: 09-Aug-2022

📅 Date of Latest Release: 25-Mar-2025

Download Schema Change Document

The schema change document contains information about updates made to the structure or validations in Form 29C schema over time. It helps ensure you’re using the latest format and comply with the technical requirements of e-filing.

🔗 Schema Change Document (134 KB): Download Schema Change PDF

📄 Version: 1.3

Steps to File Form 29C

1. Prepare financial statements and compute total income.
2. Calculate Adjusted Total Income by adding back eligible deductions.
3. Compute AMT liability at 18.5% + surcharge/cess.
4. Get Form 29C prepared and certified by a Chartered Accountant.
5. Generate the form in XML format and validate it using the Income Tax utility.
6. Upload the XML file via the Income Tax e-filing portal.

Deadline to File Form 29C

Form 29C should be filed before or along with the filing of the income tax return. Typically, this falls on:

• 31st July for individuals and other non-audit cases
• 31st October for taxpayers whose accounts are subject to audit

Filing after the due date may result in non-availability of AMT credit and possible penalties.

Consequences of Non-Filing

• Disallowance of AMT credit
• Interest and penalty under sections 234B, 234C, and 271F
• Delay in processing tax returns or scrutiny by tax authorities

Important Points to Note

• Form 29C is required only if Adjusted Total Income exceeds ₹20 lakh.
• Taxpayers must use the latest schema version for filing.
• Form must be digitally signed by a Chartered Accountant.
• AMT paid can be carried forward for 15 years as tax credit under Section 115JD.

Conclusion

Form 29C is a crucial tax compliance requirement for individuals and entities who benefit from significant tax deductions but still have substantial income. By ensuring they pay at least the minimum alternate tax, it promotes fair contribution to the tax system. Proper computation of Adjusted Total Income and timely filing of this form not only ensure legal compliance but also facilitate smooth assessment and future tax credit utilization.

Taxpayers and professionals must regularly check for updates in schema and filing procedures. Using the right schema, following due process, and coordinating with a qualified Chartered Accountant will help avoid penalties and ensure accurate AMT filing.