Tax BenefitMinistry of Finance (Department of Revenue) via the Central Board of Direct Taxes (CBDT), in coordination with the Ministry of Commerce and IndustryVerified 19 May 2026Official source

SEZ Tax Holiday — Section 10AA Income Tax Exemption

Section 10AA provides a phased, 15-year income tax holiday for SEZ units that began operations between April 1, 2006, and March 31, 2021. This tax exemption reduces corporate tax liability based on export profits. A Chartered Accountant's certification is mandatory for claiming this benefit during tax filing.

Maximum amount
—
Processing time
4–8 weeks
Application window
Open annually during tax filing season. File Form 56F by September 30th or October 31st.

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Eligibility criteria

Company type
Private Limited, LLP
Stage
Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States
All India (nationwide)
Sectors
saas, ai, fintech, healthtech, edtech, manufacturing, pharma, biotech, engineering, media, other

Documents required

1
Form No. 56F
Mandatory report generated and verified by an Accountant to validate export profits.
Tip: Ensure it's certified electronically by a Chartered Accountant. Obtain well before the deadline.
2
Letter of Approval (LoA)
Initial authorization issued by the SEZ Development Commissioner. Required to establish SEZ eligibility.
Tip: Keep the original document safe as proof of your SEZ status.
3
Separate Books of Accounts
Must be maintained specifically for the SEZ unit. Verifies financial transactions and adherence to the scheme.
Tip: Ensure accurate bookkeeping from the start of operations within the SEZ.
4
Import-Export Code (IEC)
Issued by the DGFT, necessary for conducting export operations.
Tip: Apply through the DGFT online portal if not already obtained.
5
Annual Return of Income
Form ITR-6 for companies or ITR-5 for LLPs/Partnerships. Required annually for income tax filing.
Tip: File on time to avoid penalties and ensure eligibility for the tax holiday.
6
SEZ Reinvestment Reserve Statement
Mandatory for years 11 to 15 to prove 50% of export profit was retained.
Tip: Ensure proper documentation to avoid discrepancies during audits.
7
Bank Realization Certificates (BRCs)
Proof of foreign exchange realization within the legally allowed timelines.
Tip: Regularly obtain BRCs for all export transactions to comply with SEZ regulations.
8
Customs/Bond Documentation
Form-H (Bond-cum-Legal Undertaking) executed with the Development Commissioner.
Tip: Complete this at the earliest to facilitate smooth customs operations.

How to apply for Section 10AA

1
Appoint a Chartered Accountant to audit the export accounts and generate Form 56F details offline.
2
Access the Income Tax e-Filing Portal using your SEZ unit's Corporate PAN.
3
Navigate to e-File > Income Tax Forms > File Income Tax Forms and select Form 56F on the portal.Open portal
4
Assign the form to your CA on the portal; the CA must log in to accept, sign, and digitally upload the certificate.
5
Accept the CA-submitted Form 56F and cross-reference the exact figures in Schedule 10AA of your ITR filing.

Frequently asked questions

Who is eligible for Section 10AA?

Section 10AA is available to Private Limited, LLP companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across all Indian states (nationwide).

How much funding does Section 10AA provide?

Section 10AA provides up to —.

How long does Section 10AA approval take?

The typical processing time from submission to disbursement is 4–8 weeks.

Is Section 10AA currently accepting applications?

Yes, Section 10AA is currently active and accepting applications. Application window: Open annually during tax filing season. File Form 56F by September 30th or October 31st..

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Information is based on publicly available scheme guidelines. Last verified 19 May 2026. Always verify with official sources before applying.