On 5 August 2026 the Income Tax Department issued Notification No 107/2026 under Scheme Office SO 4319E 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 specifies the procedural rules for the Authorities financial reporting requiring the maintenance of detailed registers of inward and outward foreign exchange transactions periodic submission of statements of accounts and the filing of audited returns disclosing the utilization of SEZ specific tax benefits The measure is designed to enhance transparency in the SEZ financial regime ensuring that tax incentives are claimed in accordance with the legislated conditions and that any deviation is promptly identified and addressed by the tax authorities The procedural requirements take effect 1 July 2027 with the Authority mandated to file its first periodic statement by 30 September 2027
Key Takeaways
- Enhanced Financial Reporting for SEZ Operators The Noida SEZ Authority must maintain comprehensive registers documenting all foreign exchange inflows and outflows including detailed descriptions of transactions counterparties and the purpose of each exchange to facilitate effective tax administration monitoring
- Prescribed Periodical Account Statements The Authority is required to file periodical account statements quarterly adhering to the format prescribed under Section 536 1 ensuring standardized presentation of financial data and enabling swift scrutiny by jurisdictional officers
- Compliance Deadline and Penalty Implications The first periodic statement is due by 30 September 2027 with subsequent filings on a quarterly basis; failure to file or submission of inaccurate data triggers penalties under Section 271 1 g of the Income Tax Act 2025 and may result in the clawback of previously granted SEZ tax benefits
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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