On 5 August 2026 the Income Tax Department issued Notification No 106/2026 under Scheme Office SO 4318E notifying the application of Section 536 1 of the Income Tax Act 2025 30 of 2025 in the case of the Noida Special Economic Zone Authority This notification supplements the earlier SO 4319E and SO 4320E directives by specifying additional compliance modalities for the Authorities financial oversight including the mandatory reconciliation of SEZ earnings with tax liability computations the filing of detailed statements on export oriented unit performance and the maintenance of a centralized dashboard for real time tax monitoring The measure aims to close regulatory loopholes identified in prior audits ensuring that SEZ tax benefits are exclusively granted to compliant operators and that any misuse is swiftly rectified through reassessment proceedings The compliance framework becomes operational 1 August 2027 with the Authority required to integrate the new reporting mechanisms into its existing financial software systems by 30 June 2027
Key Takeaways
- Mandatory Financial Reconciliation and Liability Computation The Noida SEZ Authority must perform monthly reconciliation of SEZ derived earnings with tax liability ensuring that all claimed incentives are substantiated by documented evidence and that any discrepancies are promptly rectified to avoid reassessment
- Detailed Export Oriented Unit Performance Statements The Authority is required to submit detailed performance statements outlining export volumes foreign exchange earnings and value added metrics accompanied by certified audited reports to demonstrate compliance with the 2025 Acts SEZ specific conditions
- Operational Deadline for Digital Reporting Integration The Authority must integrate the new reporting mechanisms into its existing financial software systems by 30 June 2027 with the first mandatory filing due 1 August 2027 and non compliance subject to penalties under Section 271 1 c and Section 271 1 g of the Income Tax Act 2025
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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