The Central Board of Direct Taxes (CBDT) has mandated Special Economic Zone (SEZ) units to submit revised disclosures in their income tax returns (ITRs) starting from the current assessment year. This directive aims to improve oversight of tax incentives claimed under Sections 10AA and other related provisions, ensuring accurate reporting and preventing misuse of SEZ-related exemptions. All companies operating within SEZs are now required to provide detailed schedules outlining export turnover, employment data, capital investments, and the nature of business activity.

The updated Form ITR-6 includes a specific annexure for SEZ disclosures, capturing unit-wise information on commencement dates, Letter of Approval (LoA) numbers, and benefits availed under the SEZ Act and Income Tax Act. Companies must also declare whether they’ve claimed tax holidays and the computation of eligible profits, along with supporting documents. The CBDT has clarified that non-filing or misreporting of these details could result in the denial of exemptions and trigger scrutiny proceedings, especially where discrepancies are found between SEZ records and ITR data.

To assist companies in compliance, the e-filing portal has added validation checks and pre-fill options for SEZ unit details linked to PAN and GSTIN, enabling more accurate and efficient submissions. SEZ units are strongly advised to reconcile their books, validate tax claims, and maintain documentation supporting their exemptions. This enhanced disclosure requirement is part of a broader push for transparency and audit readiness, ensuring that fiscal incentives are granted only to genuinely eligible entities within India’s export-oriented growth framework.